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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?
My girlfriend had a land contract that went bad and the owner was trying to forclose on the house, she was unable to obtain financing so I purchased the house, with a gifted equity down payment, everything is in my name but she is making the payments, now she wants me to quit claim her on to the deed why would we want this or do we need it
Posted on: 23rd Feb, 2008 01:19 pm
Welcome Kimberly,

Perhaps your girlfriend wants to have the property in her name and that's the reason she wants you to sign a quitclaim deed and transfer the property to her. But if she wants to take over the property, probably the lender would also require her to refinance the loan in her name.
Posted on: 26th Feb, 2008 12:56 am
in 1977, I give my mother a quitclaim deed, so she could borrow some money to repair the property, now she quitclaim the property back to me. Because she is up in age and unable to pay back loans against the property, she quitclaim the property back to me, I was the original owner of the property, however, I understand that she has quit claim deed the property to my brother. I paid off a mortage of $27,000. 00 , who is intitle to the property?
Posted on: 15th Mar, 2008 04:54 pm
In 1977 I give my mother a quitclaim deed, so she could borrow some money to repair the property, now she quitclaim the property back to me. Because she is up in age and unable to pay back mortage builded up during the year, that is one of the reason she quitclaim the property back to me. However, I understand that she give her younger son a quitclaim deed for the same property which was my from the begining. Does he has a claim against this property?
Posted on: 15th Mar, 2008 05:00 pm
Hi guest,

Welcome to our community forums.

If your mom has quitclaimed the property back to you, then you will be the owner. How does your brother come into the situation? Please read through the quitclaim deed and try to understand what it says, and who are listed as the grantees (receivers of property). If it says you and your brother are the ones receiving property, then obviously the latter has an interest in it and can rightfully claim his share.

Know more on Quitclaim deeds and how they work .

Regards,

Jessica.
Posted on: 17th Mar, 2008 03:32 am
is it possible to quit claim a property with an active mortgage? the house was bought less than a year ago
Posted on: 09th Jan, 2012 07:17 pm
you may quitclaim the property but the new owner of the property will have to immediately refinance the mortgage in his/her name.
Posted on: 10th Jan, 2012 12:42 am
I want to transfer legal ownership of my home to my son to preclude future loss of the home if I and/or my wife were to require admission to a nursing home. Is there a way to do this and retain the mortgage in my name?
Posted on: 13th Feb, 2012 12:16 pm
Hi Pettisfarm,

Once you transfer the property to your son, he will become the owner of the property. Once the lender comes to know about this, he will want your son to refinance the mortgage in his name. So, unless he has the required credit score and income to get the mortgage transferred in his name, it's better to not transfer the property to him.

Thanks
Posted on: 14th Feb, 2012 10:48 pm
What form is needed to add spouse name to homestead on our home ( Texas )
Posted on: 06th Mar, 2012 02:23 pm
Hi Dtex,

If the property is free and clear, then you will be able to use a warranty deed in order to add your spouse to the property deed. If there is a mortgage on the property, then you will have to use a quitclaim deed to add your spouse to the deed.

Thanks
Posted on: 07th Mar, 2012 12:59 am
My mother quitclaim property to me and my siblings. One has a mortgage the other back taxes owed. My name is not on the mortgage. If either of these properties go into foreclosure will it hurt my credit?
Posted on: 08th Mar, 2012 09:54 am
Hi Lgun!

Welcome to forums!

As your name is not mentioned on the mortgage docs, the foreclosure of the property won't affect you in any way. However, you will lose the property in foreclosure sale.

Feel free to ask if you've further queries.

Sussane
Posted on: 15th Mar, 2012 12:41 am
i attempted to file a quit claim deed with the county recorder and was told that i need to fill out other new york state forms rp 5217 and tp 584 both of which appear to be used when selling the house which i am not. i explained this to the clerk, she said "that doesn't matter" i think they are wrong...can you advise?
Posted on: 16th Mar, 2012 09:58 am
Hi madinny!

Welcome to forums!

Even I think they are wrong in saying this. It will be better if you could contact a real estate attorney and take his opinion in this matter.

Feel free to ask if you have further queries.

Sussane
Posted on: 22nd Mar, 2012 12:32 am
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