Deed transfer

Shellyw419

LoanSafe Member
I was recently signed over the deed to the house I am living in and applied for a refinance to pay off the existing mortgage. My question is what happens if I get denied the refinance will I just continue to pay the existing mortgage that is in my ex in-laws name. When they signed the deed over to me did that automatically sign the current mortgage responsibility over to me?
 

Jzone

LoanSafe Member
I was recently signed over the deed to the house I am living in and applied for a refinance to pay off the existing mortgage. My question is what happens if I get denied the refinance will I just continue to pay the existing mortgage that is in my ex in-laws name. When they signed the deed over to me did that automatically sign the current mortgage responsibility over to me?
This could get interesting depending on how your relationship is with the ex in-laws. First, I would verify that the home was actually signed over to you and you alone. It's possible your name was simply added to the deed. In that case you would now be a co-owner of the home.

Ownership of a home is done through the deed and title. The mortgage is secured by the home. In your case, it sounds like you own the home but the inlaws are still legally responsible for the existing mortgage.

Lenders don't have "ownership" of a home, they have a "security interest". By signing over the deed to the house to you, your in-laws have basically transferred ownership and most lenders would use the "due on sale/transfer" clause in the mortgage to force the mortgage to be due in full immediately.

This could get interesting if a few things happen. How many years are left on the existing mortgage? What if the in-laws decide not to pay the mortgage anymore? The lender could foreclose. What if the lender decides to enforce its due on sale clause? And you cant get financing?

These are all worse case scenarios. But better to be prepared for the worse instead of hoping for the best.

In reality, the bank may not even review the property deed. As long as the mortgage keeps getting paid, they are happy. I once sold a house on a land contract that I still had 5 years on the mortgage. Technically that is still a transfer of ownership, but I just kept making the mortgage payment and never heard from the bank.

In your case, I would verify the deed is no longer in your ex in-laws name and try to refinance. At closing, the existing mortgage would need to be settled and you would make payments on your new mortgage.

Good luck and I hope there are no problems for you.
 

Shellyw419

LoanSafe Member
They com
This could get interesting depending on how your relationship is with the ex in-laws. First, I would verify that the home was actually signed over to you and you alone. It's possible your name was simply added to the deed. In that case you would now be a co-owner of the home.

Ownership of a home is done through the deed and title. The mortgage is secured by the home. In your case, it sounds like you own the home but the inlaws are still legally responsible for the existing mortgage.

Lenders don't have "ownership" of a home, they have a "security interest". By signing over the deed to the house to you, your in-laws have basically transferred ownership and most lenders would use the "due on sale/transfer" clause in the mortgage to force the mortgage to be due in full immediately.

This could get interesting if a few things happen. How many years are left on the existing mortgage? What if the in-laws decide not to pay the mortgage anymore? The lender could foreclose. What if the lender decides to enforce its due on sale clause? And you cant get financing?

These are all worse case scenarios. But better to be prepared for the worse instead of hoping for the best.

In reality, the bank may not even review the property deed. As long as the mortgage keeps getting paid, they are happy. I once sold a house on a land contract that I still had 5 years on the mortgage. Technically that is still a transfer of ownership, but I just kept making the mortgage payment and never heard from the bank.

In your case, I would verify the deed is no longer in your ex in-laws name and try to refinance. At closing, the existing mortgage would need to be settled and you would make payments on your new mortgage.

Good luck and I hope there are no problems for you.
they are no longer on the deed it was completely signed over to me. There is 10 years left on the mortgage which I have been paying for the last 10 years and would continue to do so until it’s paid. I have been reading about closing and how people get denied and I maybe just over thinking.
 
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