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I transferred title to my home to a living trust, of which my wife and I are trustees, and my children are the beneficiaries. The main reason was to avoid probate. My mortgage company wants $100 fee for "processing" the quit claim deed.

I understand the mortgage co has a lien on the property until the loan is paid (in 2022). But I'm not quite clear on why I should officially notify them that I transferred my interest in the property to the trust.

My question is;

  1. If mortgage co doesn't officially recognize the quit claim deed, how will that affect the transfer of my estate to my children if I die?
  2. Can I just send them (certified mail) a copy of the quit claim deed and refuse to pay the fee?
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The bank loaned you money. They have lien on the property. They have filed paperwork with the local government regarding that lien. If you want to change that paperwork you need them to cooperate. They need to make sure that their interest in the property isn't jeopardized by your actions. Their investors demand that their money be protected. They charge $100 for that service.

The quit claim deed tells the world that you are giving up ownership in the property. Are you sure you want to leave the interpretation of your actions and intent to a corporation and the legal system.

With only seven years left on the mortgage you most likely have significant equity in the home, even if the value of the property hasn't gone up. Don't you wish to protect that equity by spending $100?

  • The alternative is have your own lawyer work with them on this document, which will cost more than $100 in addition to their $100. Or pay off the loan so the lien isn't part of the equation. (I presume you do have a lawyer sanity-checking the trust paperwork.) – keshlam Aug 31 '15 at 2:57

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