Home Mortgage Transfer

Question

Is it possible to transfer a home mortage to another individual such as an aunt. In such a way that the home mortgage is not in my name anymore. Are there any implications ? This home is in NJ.

Answer 1

Depends - You need to check your loan documents to see if the loan is assumable.  Check the TIL (Truth in Lending).  Most loans today are not assumable.

Answer 2

Yes, it is called an "Assumption". Contact your lender to find out if your loan is assumable. If it is, then your aunt will need to qualify for the loan. Once she has been approved the Lender will require you to contact an escrow company to complete the transaction. The Lender will forward an assumption package to the escrow company for you and your aunt to sign. In the package of documents there will be a release of liability for you to sign -this is an important document that will release you from any obligation to the loan. Good Luck