The question…

Our uncle died a few weeks ago and he quit claimed a deed to us for some property. It is a conventional insured mortgage. Will we have to refinance the mortgage or can we just assume it? We have been living in the home for 1 1/2 years and have made the payments on the home if that helps but probably not.

My answer:

You will have to refinance and qualify for a new mortgage with your income, assets, and credit. All the quit claim deed does is put your name on the title. It does not put your name on the mortgage.

(Note: Many folks mistakenly call this a “quick claim deed”…I guess because they think it's a “quick” way to put some one on title…and it is. But it reality it is called a “quit claim” deed because it is a way to give the current owner’s interest to some one else…thereby stopping (quitting) any “claims” of ownership from the former owner(s).)

It also does not matter if you have been making the payments. The mortgage is in your uncle's name. And unlike a quit claim deed that transfers people on or off title, there are no transferring people on or off mortgages.

The mortgage is either in force with the people who were qualified and approved for it. Or, it is paid in full and satisfied and those same people are now no longer responsible.

You are going to have to refinance so your uncle's mortgage is now satisfied and you are now on title and on the mortgage.

Thanks for the question…Good Luck!


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