What is involved in a transfer of deed from brother to sister? Is a mortgage assumable under these conditions? Who then gets the mortgage? And who then can sink equity out of the property?
Also, is there tranfer tax involved in this kind of family member transaction? Does it matter if the home being deeded is an investment home or a primary residence?
Thank you
JayDee
What is involved in a transfer of deed from brother to sister?
A deed that transfers title from brother to sister is drawn up by your attorney and recorded at the courthouse.
Is a mortgage assumable under these conditions?
Almost all – if not all – conforming loans are assumable by an owner-occupant buyer. If the loan is an assumable loan, then the brother requests an assumption package from the lender (or noteholder). The sister completes the assumption package and submits it to the noteholder for approval.
Who then gets the mortgage?
The noteholder holds the mortgage on the property until the loan is paid off regardless of who is liable for paying the loan.
And who then can sink equity out of the property?
Sink? This is a new term to me; perhaps you meant cash out – as in refinance. Usually, only the titled owner(s) can cash out their equity.
Also, is there tranfer tax involved in this kind of family member transaction? Does it matter if the home being deeded is an investment home or a primary residence?
The answer to both questions depends upon your local taxing jurisdiction and your state/municipal laws. Call your county courthouse to get these two questions answered.