Purchasing real estate with a mortgage loan involves two series of transactions. The loan transaction occurs between you, the borrower, and your mortgage lender. The transaction to transfer the property into your name takes place between you, the buyer, and the seller. Typically, the borrowers listed on the mortgage loan are subsequently listed as the grantees on the deed to convey the title. However, over time you might want to change the title. This can be accomplished by using a quitclaim deed.
The title to a piece of property is commonly misunderstood to be an actual document. A real estate title is a listing of the chain of ownership and other transactions that have been recorded for the property. Important documents -- deeds, mortgages and liens -- are filed on public record and can then be searched to form a title report. The most current deed on record determines who owns the property. The owner is often said to "hold" the title.
As a title holder, you can make changes to the title as you see fit. Common changes to a title include adding or removing someone as an owner. If you need to make a change to your title, contact an attorney to prepare a quitclaim deed. The attorney needs some information to draft the deed, such as your full name and the full name of the person you are adding or removing. Additionally, he will need the property's address. Once the attorney has completed the deed, meet with him to sign it. In most states only the grantor needs to sign. In Kentucky, a notary public needs to witness and acknowledge your signature.
Record the Deed
Submit the signed quitclaim deed to the county recorder/clerk. Depending on your location, there might be some type of real estate transfer form to complete. The clerk can provide the form and help you fill it out. There's a small fee charged to record documents, however these vary by location as well. After the deed is recorded, the original is typically returned to the grantees. The original should be kept in a safe place.
Changing the title to your property does not change the mortgage loan terms and conditions. Removing someone from the title who is also a borrower does not void their financial responsibility to repay the loan. Likewise, adding a new person as an owner doesn't mean he is in debt to the mortgage company. The only way to change the terms of the mortgage or alter the borrowers is to refinance the loan. If you are refinancing with a new person or removing someone, the mortgage company will typically have a deed prepared for you.
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