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.
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?
what are my rights, i have the quit claim deed in my name in nc and the morgage is still in my friends name and he is decease. what can i do. or what rights do i have to the property. the house was never refinanced.
Hi jdminc!
Welcome to forums!
As the property deed is in your name, you will be considered as the owner of the property. However, as the mortgage is not in your name, you won't be liable for paying it. But if you want to save the property from foreclosure, you will be liable for paying off the loan. In such a situation, it will be better if you could refinance the mortgage in your name.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As the property deed is in your name, you will be considered as the owner of the property. However, as the mortgage is not in your name, you won't be liable for paying it. But if you want to save the property from foreclosure, you will be liable for paying off the loan. In such a situation, it will be better if you could refinance the mortgage in your name.
Feel free to ask if you've further queries.
Sussane
when signing a quitclaim for payments on a timeshare, does it release you from the payment owed and the timeshare. by signing the quitclaim does that cause lien on a person house?
Hi Guest!
Welcome to forums!
A quitclaim deed will help you in transferring property from one person to another. However, the mortgage won't get transferred in this process. In such a situation, the person who is taking over the property will have to refinance the mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
A quitclaim deed will help you in transferring property from one person to another. However, the mortgage won't get transferred in this process. In such a situation, the person who is taking over the property will have to refinance the mortgage.
Feel free to ask if you've further queries.
Sussane
Former neighbor filed bankruptcy and quit claimed the deed. Mortage still in the name of fomer neighbor. Is the new neighbor (grantee) allowed to occupy the home immediately?
Hi bleep,
As bankruptcy has been filed by the previous owner and as the property was included in it, things may get difficult for the grantee. It will be better if the grantee can take help of a real estate attorney or a bankruptcy attorney and take his/her opinion in this regard.
As bankruptcy has been filed by the previous owner and as the property was included in it, things may get difficult for the grantee. It will be better if the grantee can take help of a real estate attorney or a bankruptcy attorney and take his/her opinion in this regard.
Can parents do quick claim deed to me (did a short sale on my home) and still have mortgage under their name
I owned property with a partner. Partner (grantor) signs grant deed giving sole ownership to me (grantee). Mortgage loan on property is in grantors name only. If grantor stops paying mortgage, can bank that owns mortgage come after my property?
hi david,
if your parents quitclaim deed the property to you, then you may have to refinance the loan in your name. the lender will want the property and the mortgage in the name of the same person.
hi rt,
the bank has the right to foreclose the property on non-payment of the mortgage payments. however, in this situation, the lender may face difficulty in foreclosing the property. it would have been better if you would have refinanced the mortgage in your name and paid off the debts.
thanks
if your parents quitclaim deed the property to you, then you may have to refinance the loan in your name. the lender will want the property and the mortgage in the name of the same person.
hi rt,
the bank has the right to foreclose the property on non-payment of the mortgage payments. however, in this situation, the lender may face difficulty in foreclosing the property. it would have been better if you would have refinanced the mortgage in your name and paid off the debts.
thanks
Hi,
My wife's father passed away a little less then 10 years ago, and he had bought a property (I think in the late 60's early 70's) that he had left in a trust to his 2nd wife (my wife's step mother), with the stipulation that she could own and use it until either she passed away or no longer wanted it and then the property would go to my wife and her two sisters. Now fast forward to about a month ago, my wife recieves a call saying that her step mother (which they are not on the best of terms) no longer wants to deal with the home and that she is transfering it to her and her 2 sisters. So, the process of the Deed Transfer began and it is currently being recorded at the county registers office. Now my wife and her two sisters want to turn around and sell the home and they already have a listing agent involved (although it is not listed yet since the recording has not been confirmed with the county yet). In addition there is the matter of the mortgage. There is not a tremendous amount owed, and I think my wife and her sisters were thinking they could either sell the home quickly and then pay the mortgage debt in full with the proceeds or that they could continue making payments to the mortgage company for a month or two (on her step mothers behalf) until it's sold and then pay it in full. Now to make matters more difficult we do not have the loan number, which I would assume we would need so we can continue to make the payments or to pay it off in full. As a result my wife is really scared that the house will go into forclosure as a result of this small balance owed when the home is worth significantly more. We have tried to contact her step mother with regards to the loan number, but unfortunately have not been successful with getting the information. Also, the loan was originally with GMAC, but now we believe it is with Ocwen as GMAC sold most of their mortgages to them just about a month ago. We have tried calling them to explain the situation and find out how to proceed and they won't even talk to my wife about it, since they don't recognize it as her loan. As a result of everything going on my wife is very stressed right now, as she is the only one of the three sisters in the area where the home is located, so the majority of the responsibility has fallen to her despite her other sisters attempts to be helpful. So, I am writing this in hopes that I might get some advice and answers on how it would be best for my wife and her 2 sisters to proceed with this situation and avoid forclosure.
I would be grateful for any assistance you can provide and thank you for your time.
Sincerely,
Bryan
My wife's father passed away a little less then 10 years ago, and he had bought a property (I think in the late 60's early 70's) that he had left in a trust to his 2nd wife (my wife's step mother), with the stipulation that she could own and use it until either she passed away or no longer wanted it and then the property would go to my wife and her two sisters. Now fast forward to about a month ago, my wife recieves a call saying that her step mother (which they are not on the best of terms) no longer wants to deal with the home and that she is transfering it to her and her 2 sisters. So, the process of the Deed Transfer began and it is currently being recorded at the county registers office. Now my wife and her two sisters want to turn around and sell the home and they already have a listing agent involved (although it is not listed yet since the recording has not been confirmed with the county yet). In addition there is the matter of the mortgage. There is not a tremendous amount owed, and I think my wife and her sisters were thinking they could either sell the home quickly and then pay the mortgage debt in full with the proceeds or that they could continue making payments to the mortgage company for a month or two (on her step mothers behalf) until it's sold and then pay it in full. Now to make matters more difficult we do not have the loan number, which I would assume we would need so we can continue to make the payments or to pay it off in full. As a result my wife is really scared that the house will go into forclosure as a result of this small balance owed when the home is worth significantly more. We have tried to contact her step mother with regards to the loan number, but unfortunately have not been successful with getting the information. Also, the loan was originally with GMAC, but now we believe it is with Ocwen as GMAC sold most of their mortgages to them just about a month ago. We have tried calling them to explain the situation and find out how to proceed and they won't even talk to my wife about it, since they don't recognize it as her loan. As a result of everything going on my wife is very stressed right now, as she is the only one of the three sisters in the area where the home is located, so the majority of the responsibility has fallen to her despite her other sisters attempts to be helpful. So, I am writing this in hopes that I might get some advice and answers on how it would be best for my wife and her 2 sisters to proceed with this situation and avoid forclosure.
I would be grateful for any assistance you can provide and thank you for your time.
Sincerely,
Bryan
Hi bryscarl,
Your query has been replied to in the given page:
http://www.mortgagefit.com/questions-assistance/about56211.html?p=295168#295168
Take a look at it. I hope it will help you.
Your query has been replied to in the given page:
http://www.mortgagefit.com/questions-assistance/about56211.html?p=295168#295168
Take a look at it. I hope it will help you.
Thank you for your response adonis, I will check it out.
Thanks again!
Bryan
Thanks again!
Bryan
My father and I purchased a condo together in 2006. Because I had no credit, I was never listed on the mortgage or deed, but I have made all the payments. My husband and I live there now. A job transfer, however, has required a quick move on our part. If we're homeowners, we would receive $18,000 for relocation expenses, but if we're renters, just $5,000. My father is willing to quitclaim the property but is concerned with the implications. We have the ability to pay the loan in full. Is this something we should do? If so, before or after the quitclaim? And, can we pull this together in the seven days the company has given us to move forward?
Hi Lizzy,
If your father quitclaims the property to you know, then it may be considered illegal by the lender. Before taking any further steps in this regard, you should speak to an attorney.
If your father quitclaims the property to you know, then it may be considered illegal by the lender. Before taking any further steps in this regard, you should speak to an attorney.