Residential Loan Broker · Santa Rosa, CA · Member since 2013 · 184 posts · 36 votes
11y
I'm not a lawyer and this is not legal advice.
Cheapest way? I would probably transfer ownership to a trust, make him the primary beneficiary of the trust and have him refinance the loan into his name. There is a rule, called continuity of obligation, meaning that a refinance loan must have one existing borrower still be on the new loan, but if the reason for the loan transferring is because of court order/divorce, then the continuity rule won't apply.
The borrower on the new refinance transaction was added to title 24 months or more prior to the disbursement date of the new refinance transaction.
The lender documents that the borrower acquired the property through an inheritance or was
legally awarded the property (for example, divorce, separation, or dissolution of a domestic
partnership). There is no minimum waiting period with regard to when the borrower acquired
the property before completing a new refinance transaction.
The borrower on the new refinance transaction has been added to title through a transfer from
a trust, or a limited liability company (LLC), or partnership. The following requirements
apply:
– the borrower must have been a beneficiary/creator (trust) or a 25% or more owner of the
LLC or partnership prior to the transfer, and
– the transferring entity and/or the borrower has had a consecutive ownership (on title) for at
least the most recent 6 months prior to disbursement of the new loan.