Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

Can quitclaim deed transfer mortgage debt?

Author: Jessica Bennet
Community Mentor
Ask Jessica
Posted on: 10th May, 2006 11:19am

Quitclaim deed is a legal document using which you can convey your share of property-interest to another person. The deed indicates that the title is conveyed from the grantor (transferor) to the grantee (transferee). But it does not guarantee that the grantor holds the legal rights of ownership. The deed also does not imply that the title is free of liens. The quitclaim deed merely states that there has been a transfer of interest from one individual to another.

Thus, when you transfer property rights, a quitclaim deed serves your purpose. But you cannot transfer mortgage debt or any financial obligation through the deed. If there is a mortgage on the property you wish to transfer, you'll have to pay off the debt prior to the transfer and make the title free and clear. Otherwise, you'll have to transfer the loan as well.

In order to transfer a mortgage to the grantee, you'll have to convince the latter to refinance the loan in his/her name. And, at the time of refinance closing, you can sign on a quitclaim or grant deed in order to transfer the property to the grantee. Alternatively, you can transfer the title first and then have the grantee refinance the mortgage in his name. But before you do so, get it in writing from the grantee that he'll refinance as soon as you convey the title. Otherwise, you'll (the grantor) be left to pay off the loan entirely without having the property in your name.

Another way by which you can transfer mortgage debt while quitclaiming property is Novation. To know How novation works , refer to a forum discussion on this topic.

Posted on: 10th May, 2006 11:19 am
a friend of ours is having financial difficulties and is behind in his house payments, he is wanting to do a quit claim deed transfer to us and we would take over the house payments to bring it up to date and finish paying for it. are there legal complications in doing this since he still owes money? should we go to the bank instead?
Posted on: 11th Jan, 2008 04:13 pm
Hi Tina,

Welcome to the forum.

You can always quitclaim your property to anyone whenever you want but as this is a mortgaged property, you will have to inform the lender before quitclaim.

Even if you quitclaim the property to your niece, it will only transfer the property to your niece but will not transfer the mortgage to her. The mortgage will still be on your name.

Now the lender is not approving your niece for refinance the mortgage on her name. The other way to put the mortgage on her name is novation. But I don't think that the lender will even approve her for novation also because of credit her problems.

Best of luck,
Larry
Posted on: 11th Jan, 2008 04:31 pm
What is novation?
Posted on: 11th Jan, 2008 08:17 pm
My father signed as co-owner to help in a purchase of a house for my brother. My question is: If my father quit deeds the house to my brother will my father be liable for anything, like will his trust have to pay anything if something happens to my father?
Posted on: 13th Jan, 2008 07:12 am
hello lucia,

if your father signs a quit claim deed to remove his name from the title of the property, then he will lose his ownership rights to it completely and will not be liable for anything.

but is he also on the mortgage? in that case, signing a quit claim deed will not remove him from the financial liabilities associated with the mortgage. then he is also required to take the lender's consent before signing the quit claim deed.
Posted on: 13th Jan, 2008 11:16 pm
Jenkins7: Thank you for that answer but I have another one. Like I said before my dad is 85 yrs. old and not well. If anything happens to him will his trust have to pay off his share of the mtg. since his name is on the mortgage?
Posted on: 21st Jan, 2008 06:52 pm
Hi Lucia,

Welcome back.

I don't think the trust will pay. Being a cosigner, it wasn't your dad's responsibility to make monthly payments. But if your brother had defaulted, he would have to pay. So, in this case, if your dad (cosigner) passes away, I think your brother should continue with payments. By the way, were the payments being made by your dad?

Take Care
Posted on: 22nd Jan, 2008 04:08 am
I would like to add my brother to mom's property to which I have full title ownership. The house has been fully paid off by our mother. We have no plans to sell the house as long as our mother is alive. What is the best approach to add him with equal interest in the property and with the least tax consequences?

Thank you!
Posted on: 23rd Jan, 2008 04:26 pm
Hi Jenecao,

I have given answer of you query at http://www.mortgagefit.com/propertytransfer/about9940.html
You can check this out.

Feel free to ask if you have any further questions.

Best of luck,
Larry
Posted on: 23rd Jan, 2008 04:35 pm
Once a property is quick claim deeded to someone, if the person on the mortgage passes away, what steps does the new garantor need to take and can this property remain under the name of the person whom died
Posted on: 23rd Jan, 2008 07:56 pm
Hi Guest,

Welcome to forums.

The property of a deceased person should not remain in his name. The heirs should take over and enlist their names in the title otherwise they might come across problems in future.

If the deceased person has left a Will, then it needs to be probated before the heirs can get the property rights. And, if there's no Will, then the heirs need to file an affidavit of heirship or go for intestate successsion .

Thanks
Posted on: 24th Jan, 2008 12:12 am
i am an individual holding a mortgage on property. my morgagee signed a quit claim deed to another party currently living on the property. these new people want to refinance the house with a financial institution. to do this they are asking me to sign a quit claim deed to them so they can get the loan. then they will pay off the mortgage i hold. if i sign the quit claim deed before they pay off the mortgage did i give my interest in the mortgage away too.
Posted on: 24th Jan, 2008 01:45 pm
Hi Katie,

Welcome to the forum.

How can you quitclaim the property? You are not the owner of the property right. So you should not or rather you can't quitclaim. Only the owner of the property can quitclaim.

Have the first owner of the property to whom you hold the mortgage informed you when he quitclaimed the property. If not you can/should take legal actions to get back your money. You can even foreclose it. Ask them to pay your money ASAP. Otherwise take actions.

Hope this will help you

Feel free to ask if you have any further questions.

Best of luck,
Larry
Posted on: 24th Jan, 2008 01:57 pm
My sister and the immeadiate family would like to quit claim the house and mortgage to her boyfriend. He is willing to except responsibility. Will a notarized Quit claim deed take care of deed and debt.
Posted on: 11th Feb, 2008 10:52 pm
Hi Don,

Welcome to forums.

You cannot quitclaim a mortgage. Rather you can quitclaim a property by use of a deed. A notarized quitclaim deed of recorded will take care of the property transfer.

It's good to know that your sister's boyfriend is willing to take responsiblity of the loan. So, what he'll have to do is, refinance the loan in his name. That is what the lender would also prefer. But inform the lender prior to the quitclaim; the loan transfer is something which can be done only after the lender's approval.

If you wish to know about refinance, please refer to the refinance faqs section .

Hope this helps...

God bless you.

Samantha
Posted on: 12th Feb, 2008 12:58 am
Page loaded in 0.133 seconds.