Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

Is quit claiming to a friend illegal.

Posted on: 21st Oct, 2007 05:59 pm
is quit claiming to a friend illegal, in order to avoid foreclosure. say the quit claim is done, & they move in, can the person refinance right away or will they have to wait for a while before that can be done.
It will not affect your loan. The bank will still foreclose on you and get the house. However if you sell to your friend the lender has no choice. He will have to pay whatever the lender requires or else lender gets the house.

If you have a year or more and you do a land contract they may be able to refinance it. Here is one more catch though you might not have the right to do a land contract and then the bank can call your mortgage due in full immediately which is just as bad as foreclosure if you can't afford to pay it off.
Posted on: 21st Oct, 2007 07:48 pm
Hi,

You can quitclaim your house to your friend and you need to let the mortgage lender know about it. In spite of that, you still have to pay back the mortgage amount you the lender.

Regarding refinance, your friend can refinance it to his name and pay it off but you can't do it as you have quitclaim the property to your friend’s name.
Posted on: 21st Oct, 2007 10:16 pm
hello apache,

a quit claim deed will simply transfer the ownership of the home and not the financial responsibilities. it will in no way stop the foreclosure.

you must talk to your lender before quit claiming the property to your friend.
Posted on: 21st Oct, 2007 11:21 pm
you can quit claim to your friend illegal ,except to pay your all loan back or let your lender know it. if you want to avoid foreclosure, This is illegal.
Posted on: 22nd Oct, 2007 08:47 am
Hi, u can do your real property a quitclaim to your any friend. But if your house has been mortgaged for loans,you must have your lender known about it. You can pay back the loans or change your mortgage name to your friend,of course you need agreed both your friend and the lender . otherwise, you can't do a quitclaim to anyone since you have to pay back the loans. For the sake of escaping the mortgage to do a quitclaim is illegal. the refinance, your friend can refinance .
Posted on: 22nd Oct, 2007 09:12 pm
hi smaildaytoday,

you are absolutely correct, quitclaiming a property just to avoid foreclosure (though it's not possible) is absolutely illegal. transferring a property and that of a loan are two different things altogether.

apache, it's better to have a straight talk with the lender and seek help through some loss mitigation plans.

good luck
Posted on: 24th Oct, 2007 05:18 am
I understand the reply & I thank you guys very much but my question more precisely is, after the quit claim is done, how soon can the friend refinance the amount of the loan into his name in order to pay off the current loan.
Posted on: 25th Oct, 2007 04:42 pm
Immediately
Posted on: 25th Oct, 2007 05:25 pm
Page loaded in 0.128 seconds.