Gifting House With Loan

Summary

A house can be gifted while its collateral for a loan, but the loan doesnt disappear. The loan must be paid off before the property can be transferred free and clear. Consult a local attorney for more details.

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My mother in law owns a house which she bought cash, she took a personal loan out and used the house as collateral, can she gift the house to her grandson
Hello Donato, to clarify your situation, could you let me know in which country or state this house is located? Different jurisdictions might have different laws regarding property and collateral.
Monroe county pa
Hello Donato, in Monroe County, PA:
- A house can be gifted while it's collateral for a loan, but the loan doesn't disappear.
- The loan must be paid off before the property can be transferred free and clear.
Please consult a local attorney for more details.
Ok thank you
You're welcome, Donato! If you have any other questions in the future, feel free to ask. Good luck with your situation.
Thanks again
You're welcome, Donato! I'm glad I could help. Should you need more advice in the future, don't hesitate to reach out. Best of luck with your situation!