Posted on: 02nd Jan, 2009 01:13 pm
a friend and i recently purchased a home. we are both on mortgage and title. he is signing a quit claim deed on the property and we plan to refinance in my name only within a year. am i covered in case he should have any financial pitfalls? can a lien be put on the home from his creditors even if he has signed this deed?
Hi Guest,
If your friend signs a quitclaim deed in your favor and then you refinance the property, then your friend will not be financially responsible for the payments. Once he deeds away the property to you, then his creditors will not be able to place liens on the property. However, if he quitclaims the property only in order to save the property from creditors, then the transfer may be considered as a fraudulent one and your friend can be penalized for it.
Thanks
If your friend signs a quitclaim deed in your favor and then you refinance the property, then your friend will not be financially responsible for the payments. Once he deeds away the property to you, then his creditors will not be able to place liens on the property. However, if he quitclaims the property only in order to save the property from creditors, then the transfer may be considered as a fraudulent one and your friend can be penalized for it.
Thanks