When my wife and I bought our house 4 years ago we had my father in law consign to make sure we would qualify. He's also on the title I believe. Now he wants to quit claim it to us so he's not on the title anymore.
My question is what is the best way to do this so our mortgage company doesn't call the loan due. Should I call them and explain and get some kind of written approval from them?
A quit Claim Deed will remove him from the title, but will not alleviate his liability for the loan. Talk it over with the bank, because if your father in law wants off the loan, then you most likely will need to refinance.
He's fine to stay on the loan. This has come up because I want to apply for a HELOC and he doesn't want to have to provide all his income and tax info. It's my understanding anyone on title needs to submit info when applying. If he is off title than it's just my info when applying. Or is that inaccurate?
Of course partially I want to keep him on so it's easier to qualify but he's been wanting to quit claim for a while now.
Not everyone on title needs to be on the loan, however anyone on title that is not on the loan needs to sign off at the closing that the lien is being taken out on a property he hold's an interest in.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!