Does a Quit Claim Deed allow me to assume the mortgage?
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!
Author: Terri Ewing
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Tags: Conventional Insured Mortgage • Quit Claim Deed • Refinance
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We have 2 mtgs on single family rentals, ARMs left over from World Savings, now Wachovia/Wells. We’re upside down in both by $50k each, but they do just bearly cash flow. I applied for a loan mod on one that is about 5 mo. behind (current on the other & on a third - our residence). Jumped thru the hoops with Wachovia, received a form letter last mouth saying: “You have the ability to pay your current mortgage payment using cash reserves or other assets.” I disagree. I now have gotten them to accept my re-application which I’m in the process of doing. I was told by the LMO gal that the magic number is “31%”, and I came in at about “30.8%”. I’m guessing this has something to do with my income vs expenses, but its confusing, esp. considering our income is made up of 1) both on Soc. Security; 2) wife works part time, limited by SSA rules; 3) I have modest income of about $500/mo. in retail car sales. Both wife’s income & my car sales vary some from month to month.
My hardship letter reminds Wachovia we have paid over 255 payments since 2001 without a late or incident… and that we really want to keep the property.
Any advise on what Wachovia is looking for is greatly appreciated… it’s like shooting at a target in the dark! Thanks!
Mark,
I am surprised they are even contemplating modifying a rental property. Most of them don’t even consider modification for income properties. If you do have other assets in a 401K or retirement account that you could…not want to..but could use to clean up the back payments, they will eventually get around to asking for it.
If you want to keep the property, I’d start planning for that day.
Good Luck!
My partner and i purchased a home in wv in jan of 2007, co owners and both name on the mortgage. We split in feb of 2008 and i helped pay on the mortgage for a while after i moved out. she is still in the house and intends to stay there. how can i go about having my name taken off of the house and the mortgage since i no longer live there and no longer wish to be responsible for it? can she assume my part of the loan? also the mortgage is through wv housing 1st time buyer program. im not sure if that has any diference on the answer or not.