Can I transfer ownership of my house to my daughter if I have a mortgage?
Question Details:
If so, what happens legally if I stop paying the mortgage if the original lender is now bankrupt?
You seem to have two issues here:
1) Can you transfer ownership of your property: No. Most mortgages automatically default if you transfer property without paying off the note - especially if you're transferring your entire interest in the property. SOME mortgages are assumable by the new owner, but even if you do have one of those, you need to talk to the bank about their process.
2) The original lender is bankrupt: The original lender is not relevant. What is relevant is who now holds your debt. It's unlikely that the original lender just let your mortgage go when they bankrupted. More likely, they sold it to another party. You probably know who that party is, since you've been paying them, no?
This is not legal advice and is not intended to create an attorney-client relationship. The post is only an opinion. You should speak to an attorney for further information. The poster is licensed only in CT & NY. Please visit www.hamadlawfirm.com for more information about our services.
