Posted on: 04th Feb, 2009 08:46 am
if property is quit claim deeded to an individual and the property is later foreclosed will the person whose name appears on the quit claim deed be held responsible for the mortgage even if their name does not appear on the mortgage and/or will it affect that person's credit record/fico?
hi
a quitclaim deed merely transfers your share of interest in the property to another person. it does not guarantee whether the property is wholly owned by you or whether there is any lien on the property. thus you cannot transfer any loan or financial obligation through a quitclaim deed. moreover you cannot quitclaim a property that is scheduled to be foreclosed as that would be considered as fraudulent.
however, what you can do is you can quitclaim the property with the consent of your lender to someone and have him/her refinance the house which will allow you to pay off the existing debt.
further queries are always welcome.
a quitclaim deed merely transfers your share of interest in the property to another person. it does not guarantee whether the property is wholly owned by you or whether there is any lien on the property. thus you cannot transfer any loan or financial obligation through a quitclaim deed. moreover you cannot quitclaim a property that is scheduled to be foreclosed as that would be considered as fraudulent.
however, what you can do is you can quitclaim the property with the consent of your lender to someone and have him/her refinance the house which will allow you to pay off the existing debt.
further queries are always welcome.