My parents are on the loan for my home and want to be removed. What should I do?
Full Question:
Answer:
Typically, a deed may be used to transfer ownership from a
co-owner to the remaining co-owners without refinancing. Ownership is
separate from liability for payment of the loan on property. If
property is transferred from you and your parents to yourself only,
leaving them on the mortgage, they will no longer own the property, but
will be liable for payment of the mortgage.
In some cases, a mortgage has an acceleration clause, allowing the
lender to demand accelerated payments upon the happening of an event,
such as a transfer without the lender's permisssion. I suggest
contacting the lender to inquire about any restrictions applicable to a
transfer between co-owners.