Legal Question in Real Estate Law in Illinois
Assumed Mortgage
Hello,
My father indicated that he wanted to transfer ownership of his home to my brother, his wife, and myself. He is doing this to supposedly protect his secured interests due to a very ugly child custody battle he has with his 2nd wife.
The home is mortgaged. Originally he just said he was going to quit claim deed the property to the above mentioned. Now in conversation tonight he stated I would need to sign papers to assume the mortgage as well. But of course, he would still be making the payment.
Would I then be legally responsible for the mortgage and anything else to the property if something were to happen to my father or he just decide to stop paying the mortgage?
Thank you for your assistance and time. I honestly don't have a good feeling about this and would like to hear from an attorney the truth of the matter.
2 Answers from Attorneys
Re: Assumed Mortgage
Yes you would be.
Re: Assumed Mortgage
The first question is whether your father is allowed per the terms of the mortgage to assign it to someone else. He may need to obtain the permission of the mortgage company to do this. If he transfers ownership of the house without obtaining the necessary permission the mortgage company may have the right to accelerate the mortgage and require the entire balance immediately due and payable. I cannot say strongly enough that someone needs to review the mortgage documentation before proceeding.
The secondary issue is depending on the custody/support battle whether this whole idea will actually be permissible. Your father should be extremely careful before proceeding.
Very truly yours,
Thaddeus J. Hunt
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