How will changing an owner on a deed affect thean equity loanon the property?

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How will changing an owner on a deed affect thean equity loanon the property?

Wife and brother-in-law own a house in Miami. I want to buy his half out and take over his share of an equity loan. Do I call the bank and let them know as that there is a loan on the place (suppose they want to call the loan in first?)? How easy (and what do I need to do) to change the names on the deeds? Is it possible that I pay him off and that he goes and tells the bank to call the loan in so that I have to come up with funds that I don’t have? In a nutshell, we would like to change his name on the deed to me. I would then take over his loan payment as well. Then pay the loan off as schedueled.

Asked on March 25, 2011 under Real Estate Law, Florida

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You can not just change the deed and pay off a loan in his name.  If the bank finds out then they will call in the loan.  There is - generally speaking - an acceleration clause in ever loan to prevent people from doing what you want as it is illegal.  It undercuts the security interest of the lender. Now if you wanted to do it legally, under the "old" laws you would want to assume his mortgage payments on the house. That is a rarity these days.  What you are going to have to do is set up a contract for the sale of his half interest, go to a lender and apply for a mortgage and go through the entire purchase of the property.  No way around it.  Good luck.


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