Transferring Home into Our Names

The quit claim form might not work...if the home is still mortgaged, you would have to go through the mortgage company to see if you qualify to have your name on that mortgage now...double check with them before filing the quit claim.
My mom and step-dad just went through a divorce...both of their names were on the mortgage. As part of the settlement, he agreed to give my mom full ownership of the house, so he fileld out the quit claim form. (totally different set of circumstances - one of the owners dropped off title instead of both) From what I was told by someone I know in the mortgage business...technically the grandparents need to sell the home to you to get your name on the title...they could be wrong though.

Talk to the bank who is holding the mortgage. I'm not sure how easy it is to put the home in your name if your name isn't recognized on the mortgage. Things to consider: Bank will run a credit check to see if you qualify to "handle paying the mortgage" every month (even though you have been!) Perhaps a signed, notarized, affidavit from your grandparents, stating that you have paid the mortgage for (x) number of months and anything else in your favor, may help. You may want to improve your credit score by getting a copy of your credit report, anyway, so that you can remove old credit cards that are still "open credit" and make sure that you have no surprises. These are inexpensive things that can get the wheels in motion. Good luck!

Definitely check with the county recorder and the mortgage company. However, a name can be on the deed with out being on the mortgage so you might luck out there. Also, you may need a letter from an attorney indicating you are not giving any money for the change. We had to do this when taking my husband's cousin off title. Berwyn considered it a sale and expected seller's taxes.

http://www.co.lake.il.us/recorder/

Forms:
http://www.co.lake.il.us/recorder/forms.asp

these are the quick quit claim form from Lake county. Print them out and call the number on the form, the office is very nice and will tell you the steps to proceed.

I am a loan officer and a former real estate paralegal.. I can help you figure out what would be the best way to handle this and that would depend on why you want the townhouse in your name. A quit claim deed will transfer title, but that won't help with the mortgage. The servicer of your mortgage won't just put the mortgage in your name and if you aren't on title you would actually have to go through with a technical purchase of your own house. If you are on title, a refinance would put the mortgage in your name, especially if you can show that you have made all of the payments. If you are planning on selling the cost of the refinance may not make sense. If you want to sell and use the proceeds to put down on a new place, you may be able to have your grandparents be the sellers of the property and then gift you the money for your new purchase, however they would more than likely be subject to capital gains. There's a lot more to the answers but it's probably best to talk in person. Send me a private message and I'm sure I can point you in the right direction.

Hi M.,

I didn't have time to read all the posts, but just wanted to jump in and let you know your homeowners exemtion on your taxes will likely be dropped when the transfer occurs -it's automatic in Cook county (not sure about other counties) whenever any change is made to a title... make sure you re-apply to prevent a big jump in taxes that will likely short your escrow account if you have one.

Happy new year!