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Quit Claim Deed

Posted on: 07th Nov, 2009 11:21 am
my wife and i are looking at buying a house but don't have the credit or down payment to do it. we are looking into a quit claim deed on a pre-foreclosed home but are weary about what rights we will and will not have with the home.

-what exactly does "interest" in the property mean?what rights does that give us
-can the previous owner or bank take the house back?
-will we have to pay capital gain right away or only when we sell it or at all?
-can we sell/refinance the house whenever we want?
-what are the major differences between quit claim and purchasing the house

thank you in advance
If you are added to the property deed, then you would be considered as one of the co-owners of the property. Thus, you will have interest in the property. The previous owner can take away the property only if you transfer the property to him/her by signing a quitclaim deed. The lender will take away the property if the mortgage dues are not paid. You will have to pay the capital gains taxes when you sell off the property. If the property is in your name, then you can sell off the property whenever you wish. However, in order to refinance the loan, you should have a good credit score and stable income.

There is no difference between signing a quitclaim deed and purchasing the property. When you purchase the property, you will have to ask the previous owner of the property to sign a quitclaim deed in your favor. Once the property is transferred to you, you'll have to refinance it.
Posted on: 09th Nov, 2009 01:11 am
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