Posted on: 25th Sep, 2012 03:50am
A quit claim deed is a legal document which transfers your ownership interest in a property to another party. The property may include home, land or mobile home. The person who transfers the property is called the grantor and the person to whom the property is transferred is called the grantee. This mortgage tool is used by spouses, friends and relatives.
Here it is to be noted that credit score has nothing to do with a property transfer through a quit claim deed. The person to whom the property is transferred may have good or bad credit. If you property is free and clear, it does not affect the grantee who has bad credit. However, if some unpaid mortgages are attached to the property, then it negatively affects the grantee. And, if the grantee has already bad credit situation, then he/she faces serious problems in repaying the loan. Anyways, once the property gets transferred, the grantee becomes responsible for paying property taxes.
Here it is to be noted that credit score has nothing to do with a property transfer through a quit claim deed. The person to whom the property is transferred may have good or bad credit. If you property is free and clear, it does not affect the grantee who has bad credit. However, if some unpaid mortgages are attached to the property, then it negatively affects the grantee. And, if the grantee has already bad credit situation, then he/she faces serious problems in repaying the loan. Anyways, once the property gets transferred, the grantee becomes responsible for paying property taxes.
sister has bad credit, my father wants to quit claim deed house to her, will there be problems with creditors
hi alex,
if the property is free and clear, then your father can easily quitclaim deed the property to your sister who has bad credit. but if there is a mortgage on the property which she needs to refinance, then she will face problems due to her bad credit.
if the property is free and clear, then your father can easily quitclaim deed the property to your sister who has bad credit. but if there is a mortgage on the property which she needs to refinance, then she will face problems due to her bad credit.
Hello Alex,
Now, considering the tax implications of doing a quitclaim, well, if you sign over the deed, you're the grantor and hence it's your liability to pay taxes.
:idea:
Now, considering the tax implications of doing a quitclaim, well, if you sign over the deed, you're the grantor and hence it's your liability to pay taxes.
:idea:
Your father can transfer the property to your sister through a quit claim deed. Since she already has bad credit, your father needs to make sure that the property is absolutely free and clear. Otherwise she will face difficulty in paying down the unpaid mortgages on that property. But, once she owns the property, the responsibility to pay taxes on that propert wil lie upon her.
Hi Alex,
A credit score has nothing to do with a property transfer. Your sister's credit score will matter only when she needs to refinance the loan or take out a new loan on that property.
Thanks,
Jerry
A credit score has nothing to do with a property transfer. Your sister's credit score will matter only when she needs to refinance the loan or take out a new loan on that property.
Thanks,
Jerry
my mother transfer her property to my wifes and
my name. she has a loan on it, the property is worth more then the loan. would i be able to refinace with fair credit. i want to use it as a investment property. what are my options. maybe i could sell it. but i would like to keep it. need your help. :( :?:
my name. she has a loan on it, the property is worth more then the loan. would i be able to refinace with fair credit. i want to use it as a investment property. what are my options. maybe i could sell it. but i would like to keep it. need your help. :( :?: