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  • May 14, 2007, 05:18 AM
    Erica_Jade22
    Add someone to your mortgage
    Hi I wondered if anyone could help me I am living with my partner but the mortgage is only in my name. I am divorced and I kept the house (bought my ex out) As my new partner pays half of everything I think it is only fair he is included in my mortgage. Can anyone please advise how you do this, if it costs, if the mortgage company will do this (he is self employed)
    Thanks
  • May 14, 2007, 08:07 AM
    NowWhat
    I think you could contact your lender and ask them to do an addendum to your mortgage to have this person added.
    Do you want him added to the deed?
  • May 14, 2007, 08:14 AM
    ScottGem
    Frankly, if I were your partner I would not do it. What you are asking is to have them take on an obligation with none of the benefits. You want them to sign a loan note on property they have no interest in.

    What you SHOULD be doing is asking your lender to help you add your parnter to the deed AND the mortgage. As long as there is an outstanding loan then you can't change the title without the approval of the lien holder.

    Another alternative is simply to refinance the loan. As part of the refinance you quit claim the property to yourself and your partner.
  • May 14, 2007, 08:26 AM
    Erica_Jade22
    Scottgem, sorry I think I asked the wrong question there. What I want is for him to be entitled to half the equity, as he is paying half the mortgage with no benefits and he didn't purchase the property he intended to buy because he is now living with me.
    What do I need to do have his name added and added to the deed?
    Thanks
  • May 14, 2007, 08:27 AM
    ScottGem
    Like I said, you need to get the permission of the lender. Then execute a quit claim deed, deeding the property from you to both of you. The lender can help you do this.
  • May 14, 2007, 08:31 AM
    Erica_Jade22
    Ok thanks for your help I will do that
  • May 14, 2007, 08:37 AM
    kanicky73
    ScottGem I have to disagree with you on this one, only because I work for a mortgage company and we do this all the time. You do not need the permission of your lender to add someone to the deed. You as the owner and already on title to the house can quit claim anyone you like. You simply fill out a quit claim and add them on. As far as adding them to the "note" or the "mortgage", what you will need to do is refinance your existing mortgage and add them as a coborrower. This will not only be adding them to title but adding them to the financial side of it as well, in turn achieving what you were looking to do. Your partner would now be entitled to half of the equity in the house.
  • May 14, 2007, 08:41 AM
    ballengerb1
    Erica, by doing this you are also giving your partner half the equity in the house even though he did not contribute to the down payment or earlier payments. I realize you want him to have some benefits but this seems out of balance.
  • May 14, 2007, 08:42 AM
    Erica_Jade22
    Thanks
  • May 14, 2007, 08:45 AM
    Erica_Jade22
    Ballenger I understand it would do this but as Ive re-mortgaged recently buying my ex-husband out there isn't at present much equity in the property but in years to come there will be, especially as my partner is doing so much work on the house. In my eyes its like a new mortgage that we are both contributing to. But I will think carefully and not jump into it lightly.
    Thanks
  • May 14, 2007, 08:55 AM
    ScottGem
    Quote:

    Originally Posted by kanicky73
    ScottGem I have to disagree with you on this one, only because I work for a mortgage company and we do this all the time. You do not need the permission of your lender to add someone to the deed. You as the owner and already on title to the house can quit claim anyone you like. You simply fill out a quit claim and add them on. As far as adding them to the "note" or the "mortgage", what you will need to do is refinance your existing mortgage and add them as a coborrower. This will not only be adding them to title but adding them to the financial side of it as well, in turn achieving what you were looking to do. Your partner would now be entitled to half of the equity in the house.

    Are you sure about this? I used to work for a bank. If you have a lien against a property that property cannot be transferred without permission of the lien holder unless the lien will be paid off. If Erica tries to register the quit-claim, the lienholder will be notified and the quit-claim may invalidated. That's the whole purpose of a lien.

    A Quit claim doesn't ADD a person to a deed. It transfers ownership from the current owner to another owner or set of owners. That set of owners could include the original owner.
  • May 14, 2007, 08:57 AM
    ballengerb1
    I don't know your personal details but you have a great deal invested that you're not thinking about. Include what you paid to your ex and the diffrence between the mortgage and the market value. That is how much you have into the property that your new partner has not paid. "there isnt at present much equity in the property but in years to come there will be" I betting that there is 10s of thousands in equity right now.
  • May 14, 2007, 09:43 AM
    AW805
    Quote:

    Originally Posted by kanicky73
    ScottGem I have to disagree with you on this one, only because I work for a mortgage company and we do this all the time. You do not need the permission of your lender to add someone to the deed. You as the owner and already on title to the house can quit claim anyone you like. You simply fill out a quit claim and add them on. As far as adding them to the "note" or the "mortgage", what you will need to do is refinance your existing mortgage and add them as a coborrower. This will not only be adding them to title but adding them to the financial side of it as well, in turn achieving what you were looking to do. Your partner would now be entitled to half of the equity in the house.

    I disagree with you Kanicky73.
    The borrower should look at her copy of the Note and Deed of Trust. More than likely there is language in those documents that state - If all or part of the property or any interest in the property is sold or transfered without the Lender's prior written consent, then the Lender may require payment in full.
  • May 14, 2007, 11:33 AM
    kanicky73
    I am absolutely positive. The "note" and the "title" do not have to have the same people on it. The note is the promise to pay the lender back. When the loan is orininally done the only people on the mortgage are put on the title. Once that transaction is completed you can add whoever you want on the title. Does that mean if you are added to title but not on the note that you have special ownership if the other person dies and there is still a mortgage owed? No. There would still be a mortgage owed and the bank would probably come calling on you. You can add whoever you want to the title. Those people do not have to be on the note. I just did it for an elderly woman who wanted her son on title but didn't want to refi him onto the mortgage. She wanted to make sure that when she passes away he can get the house. We quit claimed him onto the deed. Simple as that. In this case though, if I were her I would refi him onto the mortgage which in turn will put him on title.
  • May 14, 2007, 11:56 AM
    ScottGem
    I agree that the note and the title do not have to be the same. But I can't believe a lender would allow title to change after the fact without their approval. Because that CAN cloud the title and affect their lien.
  • May 14, 2007, 01:12 PM
    AW805
    20 years in the RE industry here.

    Again: If all or part of the property or any interest in the property is sold or transfered without the Lender's prior written consent, then the Lender may require payment in full.

    First the Borrower should confirm that the "acceleration" clause is in the security instrument recorded on his property. And more than likely it is.

    This is a provision gives the Lender the right to demand payment of the remaining balance of the loan if the property is sold or any of the borrower's interest is transferred. It is a contractual right, not a law. This means that if title to the property is transferred or part of the interest, the bank may (or may not), at its option, decide to "call the loan due."

    Will the Lender call the loan all due if you transfer a portion of your interest without notifying them? Probably not. Is it worth the risk? Absolutely not.
  • May 14, 2007, 01:26 PM
    Dr D
    I feel compelled to throw in my two cents worth into what has become a debate on the "Due on Sale Clause" found in Mortgages and Deed of Trust. I must side with those who disagree with kanicky73. A quick web search provided the following link that addresse the issue in detail: The truth about getting around due-on-sale clauses by John T. Reed . The only exception (that I could find) for the DOSC not being triggered is in the event of a divorce. For many years I had been under the impression that a single borrower could add his or her new spouse to the deed without a problem. I may have been wrong.
  • May 14, 2007, 03:04 PM
    ScottGem
    Quote:

    Originally Posted by Dr D
    For many years I had been under the impression that a single borrower could add his or her new spouse to the deed without a problem. I may have been wrong.

    I think that any lender would be happy to have someone added to a property as long as they were added to the loan as well. Nor do I see them exercizing the DOSC clause if its adding a new spouse. But, legally, a change in ownership could affect the lender's lien.
  • May 15, 2007, 07:16 AM
    NowWhat
    I just keep going back to this one thought - if the title/deed is not in the mortgage holders name and the lender calls the loan due to non-payment or whatever - what will that do to them getting their $ back? Can they still foreclose on the property if the deed is not in the mtg. holders name?
  • May 15, 2007, 07:35 AM
    ScottGem
    A lien is on the property not against a person. That's why its rare but possible for the signers of the note to not be on the deed. However for that to happen the signers of the note would have to prove their interest so the lender can place the lien.

    Otherwise, what's to stop me from going to a lender and getting a loan using your home as collateral? That's also the reason why a lender would not want to permit a title change. It would serve to cloud the title in case of a foreclosure.

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