Posted on: 07th Oct, 2009 08:48 am
Hi... I hope this still works
Can you quitclaim a house back to the bank without penalty or further responsibility on the house? One of my neighbors said they are doing this... this doesn't make sense. They say a realtor (not the bank) appraised their home at 170, that they owe still 100, since there is a 70k equity that the bank will quitclaim deed and they will be absolved of financial responsibility.
Is this possible?
Can you quitclaim a house back to the bank without penalty or further responsibility on the house? One of my neighbors said they are doing this... this doesn't make sense. They say a realtor (not the bank) appraised their home at 170, that they owe still 100, since there is a 70k equity that the bank will quitclaim deed and they will be absolved of financial responsibility.
Is this possible?
I think they are probably doing deed in lieu
When you do deed in lieu, you do not owe anythign to the bank
When you do deed in lieu, you do not owe anythign to the bank
Hi Ann!
Welcome to forums!
Transferring the property to the lender will not help them in absolving their financial responsibility. As the mortgage is on their name, they would be responsible for it. If the lender forecloses the property, it is your neighbor's credit that would get affected.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Transferring the property to the lender will not help them in absolving their financial responsibility. As the mortgage is on their name, they would be responsible for it. If the lender forecloses the property, it is your neighbor's credit that would get affected.
Feel free to ask if you've further queries.
Sussane