Can you deed a house over to someone else if you still owe a mortgage on the home?

UPDATED: Oct 5, 2011

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Can you deed a house over to someone else if you still owe a mortgage on the home?

I signed my half of the deed away when ex-husband paid me my half of the money but he failed to satisfy bank loan. He says he deeded over the property to his aunt. Is that legal?

Asked on October 5, 2011 under Real Estate Law, Pennsylvania


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If you own an interest in real estate encumbered by a mortgage or trust deed securing a loan, the property owner is free to transfer his or her legal interest in the property to a third person by a recorded grant deed or quitclaim deed. The new owner takes legal title subject to the mortgage or trust deed in place.

One issue is that potentially the transfer of legal title to a person who is not obligated under the mortgage or trust deed may accelerate the terms of the loan under express terms of the mortgage or trust deed under a due on sales clause making the loan due and payable immediately.

Good question.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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