Posted on: 20th Sep, 2008 08:04 pm
hello,
i am sendng this email to assist a friend that is in a delimna. my friend purchased a townhome from another friend who was having financil difficulties for $10,000.00. they also did a quitclaim deed on the property. is this property legally the person who paid $10,000? can she rent this property out or do she need to refinance and get the loan and insurance in her name before renting out? i want to make sure she can legally rent the place. out.
thank you,
i am sendng this email to assist a friend that is in a delimna. my friend purchased a townhome from another friend who was having financil difficulties for $10,000.00. they also did a quitclaim deed on the property. is this property legally the person who paid $10,000? can she rent this property out or do she need to refinance and get the loan and insurance in her name before renting out? i want to make sure she can legally rent the place. out.
thank you,
hi jacooper!
welcome to mortgagefit forums!
with a quitclaim deed, your friend's name has definitely come up on the title of the deed. if the person from whom your friend has purchased the property did not mention a life estate clause in the deed, then your friend is the legal owner of the property. in case there is a life estate clause, then the seller will have the right to live in the house until death. however, as your friend had purchased the house for someone, a warranty deed would have been better in my opinion.
with the signing of a quitclaim deed, only the house is transferred but if there is any mortgage on the property, that is not transferred. to transfer the mortgage in his/her name, your friend has to either go for the process of novation or do a refinance. generally lenders prefer a refinance. you can consult the lender in case there is a mortgage on the property. yes, your friend can rent the place to someone else.
hope this will help you.
thanks,
jerry
welcome to mortgagefit forums!
with a quitclaim deed, your friend's name has definitely come up on the title of the deed. if the person from whom your friend has purchased the property did not mention a life estate clause in the deed, then your friend is the legal owner of the property. in case there is a life estate clause, then the seller will have the right to live in the house until death. however, as your friend had purchased the house for someone, a warranty deed would have been better in my opinion.
with the signing of a quitclaim deed, only the house is transferred but if there is any mortgage on the property, that is not transferred. to transfer the mortgage in his/her name, your friend has to either go for the process of novation or do a refinance. generally lenders prefer a refinance. you can consult the lender in case there is a mortgage on the property. yes, your friend can rent the place to someone else.
hope this will help you.
thanks,
jerry
Hi jacooper!
Your friend should have gone for a warranty deed as he is purchasing the property. As far as mortgage is concerned your friend needs to refinance.
Your friend should have gone for a warranty deed as he is purchasing the property. As far as mortgage is concerned your friend needs to refinance.