Home Ownership in Buford>Question Details

Mckinseyg, Home Buyer in New York, NY

My father inherited his mothers estate, which the home still has a $54,000 mortgage. He is older and just wants to not have the pain and upkeep of

Asked by Mckinseyg, New York, NY Mon Jul 30, 2012

the home and would like to put the home in my name. Since there is a mortgage on the home, how would that work??

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At this time, your grandmother is on the security deed/mortgage. Your father can quit claim his home over to you. The mortgage stays in place and you will have to pay as agreed on the original mortgage. You will own the house, the bank will still have the security deed and the ability to foreclose if the payments are not made. You can find a 'quit claim' deed easily online. And, you can fill it out yourself and you can file it at the county very cheap. This avoids closing costs.

The mortgage document is also likely to have a 'due upon sale' clause, which means that the loan is to be paid off upon the sale of the property. However, most banks do not enforce this. Especially during the current economic situation when they are still sorting out foreclosures from people who did not pay. And, due to the nature of the transaction resulting from an inheritance, the bank likely would not pursue this anyway.

All of this is assuming the property is in Georgia. There are different laws in different states. Also note that depending on the situation, you may, in fact, be able to qualify for a much lower interest rate. Due to the low mortgage balance, the lower rate may not justify the amount of closing costs.

Feel free to call me at 678-992-3817 if you have any further questions regarding this.
1 vote Thank Flag Link Tue Jul 31, 2012
678-595-3077 - You may want to sell it now, as the market is making a comeback in many areas. You could also rent it out using a professional rental agency licensed to do business in your state.
The home, if quit claimed to you, would still show the mortgage in the name of whoever took out the mortgage and a lien would still go with the home. You may want to contack an attorney in your state to get additional answers.
0 votes Thank Flag Link Fri Aug 3, 2012
Why not sell it? You could turn it into a stream of income. 404-886-8789
0 votes Thank Flag Link Tue Jul 31, 2012
You have to think outside the box on this. Banks do not call in a note unless it is delinquent. Investors do this all the time without a problem. Even after the bank is notified of the change in the title, as long as the mortgage payment is paid you generally will not hear from them. An attorney can draw up a simple sale document for you. There is no closing, just a title transfer.
0 votes Thank Flag Link Tue Jul 31, 2012
You really need to consult a real estate attorney. Most every mortage note contains a "Due on Sale" clause. This means that the mortgage note is due in full when title is transferred. Should the mortgage company find out about the transfer, they can and might call the full amount due at that time. You really do not want to take the chance on what the lender might and might not enforce.

Purchasing the property from the estate and obtaining a new mortgage is the proper way to do this.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes Thank Flag Link Tue Jul 31, 2012
Investors do this all the time. Have your dad do a quit claim deed to you. He will still be on the mortgage but as long as you keep up the payments the property will be yours when the loan is paid off. Get advice from an attorney or an investor if you know a good one.
0 votes Thank Flag Link Tue Jul 31, 2012
While investors might do this, it might also violate the "Due on Sale" clause of the mortgage note.
Flag Tue Jul 31, 2012
So, does that mean I would first have to qualify for at least the remaining mortgage amount? Or can I just take over the mortgage payments?
0 votes Thank Flag Link Mon Jul 30, 2012
Two options I can think of:
1. Your father could sell the home to you for a price to pay off the mortgage, along with any closing expenses. The deed would be transferred into your name at that time.
2. Your father could pay off the mortgage if he has the means and deed the home to you.

Check with the mortgage company to see if they offer any other options.
0 votes Thank Flag Link Mon Jul 30, 2012
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