Transferring title to relative

2 Replies

Hello everybody! My name is Shawn Strain, I am from southern New Mexico! 

My parents moved to a new town a few years ago, but didn’t have the credit to purchase the home they wanted. In order to get their house my grandparents bought the house for them, and my parents have been making payments on it. Basically my grandparents have been treating this as a second residence, while my parents make the payments and all taxes.

Now that my dads credit is better he would like to take over the deed to the house. 

They went to a lawyer and a mortgage contract was brought up? I am not too familiar with this process. I figured some kind of seller financing deal would make most sense. But would like to get an opinion from you all! 

Thanks again! 


Not sure what kind of loan it is, but conventional loans more than likely will have a due on sale clause for anyone trying to transfer title while there is still a loan on the property. I'd go with seller financing/carry back on this one. Talk to the lender and/or an attorney on the fine print of getting this done as I'm not familiar with how such things are handled in your area or with which bank the loan sits.

Contact a lender about doing a refinance. Since parents are living in the home it may qualify as primary -- they may need to be added to title beforehand, or perhaps at the table.  

Mortgage lender/broker would be your best source of info but perhaps this helps. Good luck.

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