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Liability of quit claim deed

Posted on: 05th Sep, 2007 06:18 pm
my mother in-law just bought a house with owner financing from an individual. she is wanting to do a quit claim deed to my husband and i so that the irs cannot take her house.

isn't she obligated to let the individual doing the financing know she giving away title before she does this? would my husband and i be liable for the loan? if not how would the individual that financed the house reposes it if necessary? who would pay property taxes and insurance? if the title is in our name and the house was reposed, would it go against our credit? and lastly would this keep the irs from taking her house, or did they figure this out years ago?
"My mother in-law just bought a house with owner financing from an individual. She is wanting to do a quit claim deed to my husband and I so that the IRS cannot take her house. "

Mattison, why the IRS would take her house?
Posted on: 05th Sep, 2007 06:28 pm
She owes back taxes that she cannot pay.
Posted on: 05th Sep, 2007 06:36 pm
Hi Mattison,

She should inform the financer that she is interested in giving the house to you and your husband.

"Who would pay property taxes and insurance?"

After you become owners of the house it will be your responsibility to make these payments.

"And lastly would this keep the IRS from taking her house"

If IRS has already placed a lien on the house then it will remain until it is paid off.
Posted on: 05th Sep, 2007 06:43 pm
"If not how would the individual that financed the house reposes it if necessary?"

If payments stop then he will sue as per contract he has with your mother in law.
Posted on: 05th Sep, 2007 06:48 pm
hi mattison,

before giving away the title to you and your husband with a quitclaim deed, your mother-in-law must inform the financer about this. after taking over the ownership rights, you will need to refinance the loan in your name because of the change in title. and then you will have to continue the loan payments apart from paying the property taxes and insurance.

if the house is reposed, it will certainly affect your credit negatively. only if you can pay off the lien against the house, the irs will not be able to take it away.
Posted on: 05th Sep, 2007 08:27 pm
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