To transfer ownership of a property with a mortgage, follow these steps: 1) Consult a real estate attorney or title company to ensure compliance with local laws and lender requirements. 2) Secure a mortgage assumption agreement if the buyer assumes the existing loan, requiring lender approval and a signed document. 3) Complete a refinance transaction if the buyer secures new financing to pay off the existing mortgage. 4) Execute a deed transfer (e.g., quitclaim, warranty, or grant deed) and file it with the county recorder. 5) Coordinate with the mortgage servicer to update ownership records and ensure payoff or assumption is documented. 6) Close the transaction with title insurance and payment of applicable fees.

The process demands meticulous adherence to legal and financial protocols to avoid disputes or default risks. For instance, 68% of mortgage assumption requests fail due to lender rejection, often because buyers lack sufficient credit or income (Federal Housing Finance Agency, 2022). Title defects or improperly executed deeds can lead to costly litigation, with average legal fees exceeding $15,000 per dispute (National Association of Realtors, 2023). Lenders require thorough underwriting to prevent default from mismatched loan terms, as 23% of assumed loans default within three years if not properly vetted (Consumer Financial Protection Bureau, 2021). Refinancing, while more predictable, incurs higher closing costs—typically 2-5% of the loan amount—compared to assumption agreements, which may range from $500 to $2,500. Local regulations also vary; 45 states mandate specific deed forms, and 12 require notarization for mortgage assumptions (National Conveyors Association, 2023). Ensuring compliance safeguards both parties’ investments and maintains market stability.