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Does unsecured debt transfer with a quit claim?

Posted on: 05th Sep, 2010 08:40 pm
My parents home is totally paid for but in dire need of repairs and home improvement to put on the market. My parents credit is very bad. I went to the county clerks office and discovered numerous judgements. We were considering quitclaiming the property to me and getting a HELOC to do the necessary improvements. Is that a viable option? If so, will a lender insist those judgements be satisfied before giving me a loan? What is the best course of action?
Hi kimbo,

Your parents can quit claim the property to you. But you will have to pay off the judgments and liens in full and then apply for a HELOC. If there are liens on the property, then the lender will not be ready to give you a HELOC.
Posted on: 06th Sep, 2010 02:26 am
I dont have the money upfront to pay off these debts. Also it appears that the statute of limitations on judgement collections is 10 years in New York. Do you think lenders would damand payment on debts that is beyond SOL?
Posted on: 08th Sep, 2010 04:15 pm
Hi kimbo!

Welcome to forums!

You're still responsible for the debt though the SOL period is over. However, after the SOL is over, the collection agency will not be able to sue you for the debts.

Feel free to ask if you've further queries.

Sussane
Posted on: 09th Sep, 2010 01:38 am
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