Full question:
I have a friend who wants to move a mortgage from one property to another - the mortgage is signed by three individuals and and on the mortgage it is written the three names C/O their attorney although their attorney did not sign. Two of the individuals are unreachable, one is out of state and one is in jail - is it enough to have a spreader agreement and partial release signed by one of the individuals - or just their attorney - or do they need to be signed by all three individuals? If we had a satisfaction signed would that allow only one to sign? And please provide the NY statute for this law?
- Category: Real Property
- Subcategory: Joint Tenants
- Date:
- State: New York
Answer:
Typically, unless the mortgage contract states you can transfer
the mortgage to another property, you can't transfer it. The most common
way of removing someone's name from a mortgage is by refinancing the
property. It is a matter of contract law, rather than state statute.
A spreader agreement is often an agreement to spread the lien of a
mortgage on a portion of certain described premises to cover the entire
premises (but the amount of the debt remains the same). The owner and
mortgage company may also enter into a spreader agreement in which the
owner grants the mortgage company a security interest in his home in
exchange for some consideration, perhaps additional cash or a reduction
in the principal owed on the first mortgage. Whether the mortgage can
be transferred or consolidated with a mortgage on another property will
depend on the terms of the contracts involved and the policies of the
mortgage holder. Typically, all parties to a contract must agree to a
modification, but the mortgage holder's policies will govern.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
