Agreement to remove name from home title

[Luigy39]

My son and I bought a house some years ago because I could not qualify financially by myself, the plan was to remove his name after I paid the mortgage for a while, it's been 8 years and we both are in agreement on removing his name from the home's title. What are the options?

[SouthJamaica]

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@Luigy39 wrote:

My son and I bought a house some years ago because I could not qualify financially by myself, the plan was to remove his name after I paid the mortgage for a while, it's been 8 years and we both are in agreement on removing his name from the home's title. What are the options?

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You need to consult a local attorney in your area, who handles real estate closings, who can review the mortgage and tell you your options.

[Luigy39]

I was looking for an answer of someone who probably had a similar experience to mine in order to have a general idea, Talking to an attorney seems to be the logical step to take of course. Thank you.

[SouthJamaica]

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@Luigy39 wrote:

I was looking for an answer of someone who probably had a similar experience to mine in order to have a general idea, Talking to an attorney seems to be the logical step to take of course. Thank you.

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In my opinion, there is no general rule. These things are very local, and very technical, and would depend on the wording of your mortgage, and on state and local laws.

[CH-7-Mission-Accomplished]

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@Luigy39 wrote:

My son and I bought a house some years ago because I could not qualify financially by myself, the plan was to remove his name after I paid the mortgage for a while, it's been 8 years and we both are in agreement on removing his name from the home's title. What are the options?

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Do talk to a RE attorney.   Normally you can transfer title via a quit claim deed.   Something to consider are any potential tax implications that may arise.   I would speak to both an attorney and an accountant.

[Credit4Growth]

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@CH-7-Mission-Accomplished wrote:

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@Luigy39 wrote:

My son and I bought a house some years ago because I could not qualify financially by myself, the plan was to remove his name after I paid the mortgage for a while, it's been 8 years and we both are in agreement on removing his name from the home's title. What are the options?

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Do talk to a RE attorney.   Normally you can transfer title via a quit claim deed.   Something to consider are any potential tax implications that may arise.   I would speak to both an attorney and an accountant.

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  @Luigy39 

More specifically I would chose to speak with a practicing Tax Attorney who may have/work out of an office within the same county the property is located within.

[DSTforlife]

do you still have a mortgage?  if so, will he continue to be listed on the mortgage?  If he is to be removed from the mortgage, i think you will have to refinance in your name only.

[longtimelurker]

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@DSTforlife wrote:

do you still have a mortgage?  if so, will he continue to be listed on the mortgage?  If he is to be removed from the mortgage, i think you will have to refinance in your name only.

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Right, and depending when you got the mortgage,  and how much you have paid off, increasing rates might make that unattractive (but for other reasons you might want to anyway).

[ShanetheMortgageMan]

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@Luigy39 wrote:

I was looking for an answer of someone who probably had a similar experience to mine in order to have a general idea, Talking to an attorney seems to be the logical step to take of course. Thank you.

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Anyone can be added or removed from title as long as the transferring document meets the county recording requirements.  However, if there is a mortgage on the property, some title transfers may trigger the mortgage's "due on sale" clause, which is where a mortgage lender can accelerate the due date of the mortgage (so there may be 22 years left on the mortgage, but if the due on sale clause is triggered you could have a very short period of time to pay the entire balance before becoming 30-days late).   There are exceptions to certain title transfers that won't trigger the due on sale clause, created by Garn St. Germain Act at 12 USC Section 1701J-3.

You can talk with the mortgage company about your options, but it may be something you have to request and they get back to you after they have time to research it, as it's not a common question lender's customer service departments typically get.

If you wanted to take it one step further and remove your son's name from being liable for the mortgage without refinancing, then that is usually called a novation, or novation agreement.  If your lender offers it, the way that they usually go about it is similar to a loan modification in they will review the remaining borrower's (you) income to determine if they can qualify for the mortgage without the aid of the borrower (your son) being removed.  You can also ask your lender about those options as well.  If you are removed from the mortgage, you very likely should be able to be removed from title without triggering the due on sale clause.