Legal Question in Real Estate Law in New Jersey

Re: changing name on deed

There is a law commonly known as the Garn-St. Germain Act which prohibits lenders from doing anything due to certain transfers such as by Will, to a spouse or child, etc. Unfortunately, a transfer to a sibling is not protected unless, according to the statute, the Federal Home Loan Bank Board has established a regulation extending the coverage to siblings.

You could do a google search for the Federal Home Loan Bank Board to see if they have an information hotline and ask them. You could also ask the Lender. They might agree if she agreed to become a guarantor of the existng loan because bad credit or not, having 2 people responsible is always better than one.

In the meantime, if your brother would voluntarily give her 1/2 ownership but can't now because of the mortgage, he should at least have a Will leaving 1/2 to her or she'll have to fight for it in Court, If she's paid half the expenses all these years it doesn't matter that she isn't on the Deed. There are principles of law known as equitable maxims or doctrines to protect people such as her. But a Will would make it a lot cleaner.

Re: changing name on deed

I have read the other attorney's reply. You need to sit down with an attorney to solve this problem. You will want to have the attorney look at the mortgage documents to see if doing a deed to your sister will be allowed. If it is not, then you may want to contact the bank and get them to agree to it. Your sister is putting money into a house that she has no legal claim on. If nothing is done, she might have to go through a court lawsuit to get her money back or to get ownership of her part of the house.

Please feel free to contact me if you would like me to assist you.