How do I add someone to my mortgage/title?

Question

Me and my boyfriend bought a house in December, however I want out, I need to get away and travel the world before i settle in to mortgage repayments, he kinda talked me into it. I trust him, so i was wondering if there is anyway I can add his friend to the mortgage/title, and get my name off it. I know he will make the repayments but we cant refinance it because it is a new mortgage and the costs to get out of it are 1000's of dollars. What is the best way to do this? Can I leave the mortgage in my name and add his friend to the house so that he has legal standing and I dont? I guess what Im asking is if you trust the person your adding to the deed/title, can you add them, and leave the mortgage in my name (because i have to) and have the new person have the same legal standing as the person other person on the mortgage? So there will be Bec and Richard on the home loan, and Richard and John as the legal owners and they make the repayments?

Answer 1

In this situation I recommend that you definitely see a Solicitor.  Bear in mind that the mortgage provider will come after you if the friend doesn't make the repayments on your behalf.  I would suggest that, if possible, the friend legally buys your half share of the property.  For example if the house is valued at $300,000 get a legal Contract drawn up by a Solicitor for the friend to purchase your half share of the property for $150,000.  The bank then should release your interest in the property.  Again, seek legal advise!!  

Answer 2

To add a person to a deed you must prepare a new deed with all current owners listed as the seller, and all current owners plus the new person listed as the buyer. Then you must insert the legal description of the property. All current owners must sign the deed with a witness and notary. The last requirement is that the deed must be recorded in the office of the clerk or register of the county where the property is located.

I strongly recommend that you have this handled by a real estate attorney or title agency. It shouldn't be expensive and this way you can make sure that it's done properly. If you do it yourself and make even a little mistake then it can be very difficult and costly to fix. For example, many times people have tried to do it themselves and have ended up transferring the property completely to the other person instead of just adding that person.

You should also be aware that, if there is a mortgage on the property, then it is very likely that the filing of any type of deed will be a violation of the terms of the mortgage. You may need to get written permission from the lender to do this type of transfer.

Finally, there may be tax implications as a result of the transfer. That's another very good reason to speak to a real estate attorney instead of attempting to do this yourself.

PS...Bec and Richard are responsible for the loan.  The lender made the agreement with Bec and Richard not Richard and John.  So the only way to get Bec out of being RESPONSIBLE for the loan is to have Bec removed from the loan.  

You can give up your share of the home (maybe) but not your responsibility for the loan.  The lender would most definitely have to agree to that.

Last thing...I'm sure you can transfer title.  I'm sure it will be hard to transfer the loan.  However, you can have John sign a separate contract with you for payment of the "loan".  This way if John bails out on you there is a signed contract.  I would imagine it would be worded as such.  "In return for adding John to the title of the home John agrees to pay Bec "x" amount of dollars per month".  Something along those lines but get legal advice.

Answer 3

you need to go and speak to a solicitor, as these are the only people who will be able to do it for you, as all the deeds to the house need to be changed, then of course the bank which dealt with your mortgage, as your name if you wish will have to be removed from the mortgage paperwork and another name added etc, again a solicitor will be able to do most of the hard work for you,

Answer 4

Contact your local Title Company OR get legal advice.  I work for a NYSE company that has been in business for over 35 years, helping people gain access to their legal rights through the legal system, AND we are listed with the BBB and listed in many of the top money magazines such as, Forbes, Furtune, Money, Success...just to name a few.  Our provider law firm covers 28 different areas of law.  We provide the top attorney's/law firm's in the country.  You must be 18 years of age and live in the US or Canada.  Feel free to contact me for free information.  

Answer 5

go to your mortgage lender

Answer 6

Two things:

One -- you are on the mortgage and therefore responsible for the loan payments. Doesn't matter if you deed your interest to someone else.

Two -- you may have a Acceleration Clause on your mortgage. Meaning, if you deed your interest to someone else or transfer the property to another property WITHOUT the mortgage holders authorization then they could call the balance of the mortgage all due and payable. Most mortgages are set up this way to prevent this type of thing happening.

You might see if your loan is assumable -- although high unlikely, its possible that it might be. Contact your mortgage company to see if Richard and John can assume the loan and release you of liability.

Last resort, Richard and John will have to refinance. Talk to your current mortgage company, they may be able to save you money by offering a better rates and fees.

  

Answer 7

Not sure how you would go about that but the idea of having to trust a friend to do the right thing, no matter how good a friend they are, sets off alarm bells in my head. Do not put yourself in a situation where you could be lumped with a debt and have no claim to the asset, this is a bad idea.