Financing in San Bruno>Question Details

Justin, Home Buyer in 94066

My brother's name is on the deed and mortgage, I want to take his name off the deed and keep him on the mortgage, it that possible?

Asked by Justin, 94066 Sat Mar 6, 2010

Hello, I plan to take full ownership of the house in question. I am getting a quit claim deed ready to take care of the process. However, I don't want to assume my brother's mortgage since that will cost $ and plus I am already paying him a portion of his mortgage payment. So I would like to make it so that the title is under my name only, but my brother still has his name on the mortgage. Is that possible?


Help the community by answering this question:


Hi Justin,

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.

Good luck!

Hannah Fliegel
The Credit Repair Expert
0 votes Thank Flag Link Sun Mar 7, 2010
Well here is the issue. He can quitclaim the property over to you but if the lender catches wind they can legally foreclose on the property.
1 vote Thank Flag Link Sat Mar 6, 2010
What does your brother think?
1 vote Thank Flag Link Sat Mar 6, 2010
You could do that, Justin. But, you may be better off with your brother adding you to the Grant Deed, so you are co-owners, if you are not already.

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.

Good luck,

Cashin Company
1 vote Thank Flag Link Sat Mar 6, 2010
Hi Justin,

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,

1 vote Thank Flag Link Sat Mar 6, 2010
Why would your brother agree to this?

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.
0 votes Thank Flag Link Sun Jun 27, 2010
Hi Justin,

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.

Christopher Pohlman
415.894.2469 direct
888.669.8881 toll free
0 votes Thank Flag Link Sun Jun 27, 2010
Sounds like a question for you and your brother and likely your respective Attorney's and/or Accountants.
0 votes Thank Flag Link Sun Mar 7, 2010
Confused, but I'll give it a shot. My understanding is that you are NOT currently on title nor the mortgage note. Everything that follows is based on that assumption. If you're looking to remove him from "title", then the quit claim will do the job. I'd caution you to obtain professional advice re: transfer taxes and property taxes. Counties assess transfer tax for all transfers of title w/ some minor exceptions such as parent - child transfers. Also, your property tax basis could be re-assessed and possibly jump based on the transfer. With all that said, lender documentation contains what's called an "acceleration clause". Upon transfer or sale of property, lender, at will, can call entire outstanding balance due immediately. In reality, it's not likely that lender will exercise this right as long as pymts continue to arrive on time.
0 votes Thank Flag Link Sat Mar 6, 2010
Let's first start by clarifying what you have stated, although you are using the term "mortgage", I assume that you are really talking about the "note" which is the obligation to pay the money. I know it is common for people to not state all the facts and reasons behind their questions, so I am going to make some assumptions. Do you plan to live in the house? If so, the issue is as follows, Fannie Mae guidelines are now more difficult as far as excluding an obligation from a person's debt. If you are both still on the "note", then the loan will appear on both credit reports. What we used to do is show 12 month's cancelled checks to exclude the payment from a person's debt. If your brother wants to buy another home, he may have a hard time qualifying for a new loan, because they no longer allow debt to be excluded unless you can prove that the person is not obligated to the debt, which basically you cannot unless you refinance and take his name off of everything.
0 votes Thank Flag Link Sat Mar 6, 2010
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