Basically what you are asking to do is have your brother continue responsibility for the liability of the mortgage, but sign off on the title of the property.
You have two instruments. The Deed and the Mortgage. If he signs a "quit claim" Deed and signs off on Title but remains on the mortgage, your lender can call the note. Meaning the lender has the legal right to demand full payment right now. There are remedies for this but I assume you do not know them or want to pay the costs associated with them.
Why would you ask your brother to sign off on the Deed but remain on the Mortgage? Do you not like your brother? You are making your brother vulnerable by doing this.
If you are trying to take over the property and just start paying the mortgage you can do this while the property Title and Mortgage stay in your brothers name and you can take the tax benefits, just speak with an accountant.
Your vulnerability is that the lender can call the note. You may not be able to "assume" the loan.
The Credit Repair Expert
If you are already co-owner, then go ahead with the quit claim deed. By the way, you don't have to have it recorded, you can always have your brother sign it and you can keep it in a safe place like a safe deposit box.
This way, there will be no transfer of sale until you need to. If you could explain why you want to do this, it might help.
Since I don't know your exact situation, you might want to have a real estate attorney advise you.
I believe your brother can quit claim you onto the deed, but your
brother will remain financially responsible to the mortgage company
for the payment until you can qualify for the mortgage and take it over.
Please consult with a local real estate attorney to discover all the ramifications.
Best of Luck,
You have been advised to get legal advice and I agree. The number of potential problems down the road are many. You might want to put a lawyer on retainer. I suspect if you do this you will need one.
More than likely, your Brothers loan documents forbid this and list the ramifications of doing so. He can't sign away his interest in a property when there is indebtedness attached to his interest in the property. If he does, the lender states the consequences. There may or may not be other avenues to explore. I would recommend first and foremost, contacting a Real Estate Attorney who encounters this kind of issue.
Generally, We as Agents are not Attorneys and can not advise as to the law. It's not within our scope. Opinion on this matter we can provide but that is no guarantee that the information is founded in anything but emotions.
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