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Paul, Other/Just Looking in Florida

Quit Claim Deed, outstanding mortgage balance, documenting consideration

Asked by Paul, Florida Fri Mar 21, 2008

I want to transfer title of my property to my son, but the transaction needs to show that he gave me consideration for the home. Currently there is an outstanding mortgage balance on the home, which we would pay doc stamps on at the time of transfer. The county office of records said that if there is an outstanding mortgage balance, then the amount of consideration written on the actual QC deed, should be nominal. He will not be assuming my mortgage, but acquiring financing of his own shortly after the transfer, with which to pay off my note.

Is there a way to document (via a form or contract) that at the time of the transfer, part of the consideration that he is offering to me is the future payment of my current mortgage balance?

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Before the transfer you should read the mortgage document, look for the "DUE ON SALE " clause. The property is securing the debt and if you no longer have title to the property, the bank will want you to pay off the debt.

Consideration for a Quit Claim transfer can be $1. Most of the Quit Claim transfers that I have come accross show a consideration of $10.00 or $100.00. A promise to perform can also be consider consideration for a contract to be binding.
0 votes Thank Flag Link Sun Apr 13, 2008
Paul,

Regarding consideration on the QC: I have seen everything down to $1.

One thought that comes to me though is if this is a foreclosure bailout maneuver, your son will not be able to get financing on the home.

If not ,and he simply wants to take out your financing and replace it with his (rate & term), most lenders will require him to make and document 6* months of him paying your loan. If he wants cash out, the requirement is 12 months. (Fannie and Freddie have no seasoning requirement for the refinance but individual lenders do).

* I do know of one lender that will allow 3 months seasoning on R&T if the new borrower can prove at least 3 months residency at the address.

Before you transfer the title be sure to verify your son can get the loan.
0 votes Thank Flag Link Fri Mar 21, 2008
I agree with Antonio--you can get some information at the county office as to what is required, but in this instance I would have to recommend a real estate attorney to assist you in the transaction to make sure that everything that needs to be done and recorded is done. It might save some headaches later when a title search is performed for a subsequent transfer of property!!
Web Reference: http://www.MykeTriebold.com
0 votes Thank Flag Link Fri Mar 21, 2008
Paul, per CA revenue and taxation code a parent to child transfer is exempt under RT 11911 et seq. I'm sure that they have the same sort of law in FL. You may want to call a title company in FL and ask to speak with a title officer who has experience with this sort of situation, or you can call a lawyer and pay a nominal fee.
0 votes Thank Flag Link Fri Mar 21, 2008
Paul:

Contact a Real Estate attorney. For under $500 you can have it all done legally and without doubts.
0 votes Thank Flag Link Fri Mar 21, 2008
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