Question: I Claudia am the borrower on a house I have just bought a year ago. My brother Frank is the co-borrower he wants off on the house as far as ownership an off the credit report. Will a quit claim deed work for us? Answer: Through quit claim deed only the interest on the title of a property gets transferred. So if your brother (Co-borrower) signs a quit claim deed he can only transfer the interest on the title of the property to you or to some one else. Through quit claim deed he can sell his interest in the property and transfer all his rights in the property to you or to some one else. But doing so will not have his name written off from the mortgage. If he wants to get rid of the mortgage with the title of the property then he needs to undergo a process called Novation. Novation is a process through which a mortgage gets transferred from the original borrower to the new borrower with the approval of the lender. Another option to transfer the mortgage is refinancing but many people do not prefer because it includes lot of junk fees which makes it more costly then novation. I will also suggest you that you take the help of an attorney so that every thing can be done as per the legal requirement. I would also like to mention some of the drawbacks of quit claim deed like quit claim deed only transfers the right of the individual signing the deed and has no guarantee over the ownership of other people in the same property. |
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