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My mother is going through some legal issues and she wants to tranfer her house over to me in the event of a judgement. The only problem is that she still owes the house to a mortgage company. Is it possible to transfer the house to my name?
DearCustomer- Legally it is possible but it would probably cause more trouble than it would be worth. Unless she has approval from the mortgage company she could be faced with the "due on sale clause" contained in almost every mortgage and the entire loan would be due.
In addition, if her legal troubles happen with in a year of the transfer then the transfer could be considered as a "transfer to avoid creditors" and the creditors could overturn the sale. It really does no good to try to protect assets from creditors once there is already a problem.
Dave Kennett
Lawyer (JD)
25 years experience in general law, including real estate, criminal, traffic, and domestic relations