Can One Spouse Sell Property To The Other?
Hello All,
I have a partner who is considering the following scenario: He and his spouse are on title with a property but the mortgage is only in his spouses name. They are movingto a new property and my he would like us to buy the property from his spouse.
Can he quit claim the property to her then sign a purchase contract to purchase it for t he exact amount on the loan balance? The goal is to get the loan out of the spouses names and into both our names and put us both on title.
Ideas? Is this possible? If not, is there another way to achieve the same goal? By the way, the loan is not assumable.
Thanks for the input.
JS.
Sure, you can quit claim rights to anyone. But thats just wasted money and screwing up titles in this case.
The spouse will still be responsible for the mortgage until its paid off. You may be able to do a bond for deed if you want to leave the original loan in place.
Otherwise, If the loan is not assumable, then you will need to qualify and get your own mortgage. Unfortnately, you will still need to pay all of the taxes, tites, and minimum closing costs through a title company.
I understand the mortgage must be paid off. The plan is to Quitclaim title to his spouse then have the spouse sell sell the property to both of us for the exact amount of loan balance.
We would have to get new loan of course but would save the realtor fees and other typical costs of a sale.
Again, the goal is to get the loan out of the spouses name into our name.
Thanks.
JS.
Any other ideas or comments?
Thanks.
Oh thats simple. Shes stuck with the original mortgage...rental or not. It will always come up on her credit report until the balance is paid.
For a new home, she will need to qualify with both mortgages against her income. They will not credit any rental income either. Thats if she wants to keep it as a rental.
You could refinance and get her name off and have your partner on as guarantor.
Finnig,
Thanks for the response. If she quit claims the property to my partner and I, does that mean that we can then just refinance as owners of the property? Actually, I like the refi idea better because its a lot less paper work than purchase money.
Thanks.
JS.