Full question:
I have an FHA mortgage with my brother (who is engaged), it is currently worth less than we paid for it. He would like to give me full ownership which I agree to. However, I cannot qualify for the loan by myself. How can we legally give me ownership (even if he may still be responsible for the debt if I default) and be sure that I would not lose the house in the event of his possible divorce? I do not know how to go about getting this done or which form I may need. Thanks for your help.
- Category: Real Property
- Subcategory: Deeds
- Date:
- State: Arizona
Answer:
You can have your brother sign a quitclaim deed to transfer his interest in the property to you. However, be aware that the lender may object due to the "due on sale" clause in the mortgage. This clause allows the lender to demand full payment of the loan if the property is transferred without their consent.
Generally, property owned before marriage is considered separate property. To further protect your ownership, your brother might consider having his fiancée sign a prenuptial agreement or a disclaimer deed, which can help clarify ownership rights in the event of a divorce.
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.