Legal Question in Real Estate Law in Illinois

My parents are divorced and they want to sign over the title/deed to the house over to me and put it in my name. I would then live there and pay the mortgage payments (with mortgage remaining in their name). They think that we can do this with the Recorder of Deeds on our own and it's that simple.... There is a mortgage ( 3 1/2 years left on it) and a home equity loan. I called Citi Mortgage and they said we could do this and the mortgage would remain the same, that the mortgage would remain in my parents name, but would not be linked to the deed or ownership of the house, just the owner of the property would change, that I would need to be on the title for 6 months in order to refinance or change the loan, which sounds strange to me. I can't refinance or buy anything right now as I haven't established a work history and credit history. I just don't understand how they can have a mortgage on a house that will be in my name...


Asked on 8/05/15, 6:32 am

1 Answer from Attorneys

Henry Repay Law Offices of Henry Repay

Although the loans they obtained are your parents' responsibility, the mortgages are actually liens against the property that they gave the lender predating this transaction you are contemplating. Those liens would continue until the loans are paid in full unless voluntarily released. If that were not the case, homeowners could get rid of their mortgages anytime by conveying their property to someone else.

That said, there are all sorts of questions to be asked, including very important income tax questions, about whether this transfer is good idea. Rarely, will all necessary considerations be addressed without an attorney involved and in most cases documents prepared without an attorney have errors.

The cost to get this done right, if it is even advisable, should not be significant. I recommend you see an attorney experienced in real estate work and that you ask your tax person about the transaction.

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Answered on 8/05/15, 7:21 am


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