Legal Question in Real Estate Law in California
Can you quit deed a house with a active loan? Do they need to get their own loan
Asked on 5/14/17, 2:51 pm
1 Answer from Attorneys
It is not illegal to deed a property that has a lien on it for a loan or any other reason. However, 99.99% of loan agreements make it an event of default to transfer ownership without paying off the loan. So they would have to get a new loan or find some other way to paying the existing loan. Otherwise the existing lender could and almost certainly would foreclose.
Answered on 5/14/17, 3:39 pm