If I enter into a quick claim deed/contract for deed with another person, will my mortgage company honor it?

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If I enter into a quick claim deed/contract for deed with another person, will my mortgage company honor it?

Will the mortgage company allow that person to continue to pay on the mortgage and release me of liability for said mortgage?

Asked on May 23, 2012 under Real Estate Law, Indiana

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

No, it will not.  Read your mortgage agreement.  It will trigger what is known as an acceleration clause in the mortgage and the mortgage will become due and owing.  The person who wishes to buy the home needs to apply for financing.  Years ago you could assume a mortgage with bank approval but those days are long gone.  Good luck.


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