Legal Question in Real Estate Law in California
property/tax law
I want to donate my home to a non-profit. I still have a mortgage. Who is liable for the mortgage? Does the entire property have to be paid off to be donated or can portions of it be donate over time as the mortgage is paid off? what are my options/ pros and cons?
2 Answers from Attorneys
Re: property/tax law
Your question is too broad to answer in this forum. If you donate your property it belongs to the charity. You can donate it subject to the loan and your deduction will be based upon your equity.
Re: property/tax law
From the lender's perspective, you would still be personally obligated to pay the loan. As an initial matter, transferring title to the property is usually defined as a loan default, allowing the lender to accelerate the loan and demand full payment. Also, since you have the mortgage, which presumes you signed the promissory note, you are personally required to pay the loan.
For further information, you should talk to the organization that you want to donate the house to.
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