Posted on: 19th Jul, 2007 11:16 pm
I am interested in investing in real estate and have an opportunity to partner with an investment company. Can I purchase a house and then quit claim the property to an individual at the investment company without having a negative impact on my own credit? And after the quit claim is signed am I held responsible only until the grantee (individual from investment company) refinances the property?
Hi Englund,
Welcome to forums.
Your credit will not be affected if you quitclaim the property to the individual at the investment company. An individual's credit is affected only if he hasn't been that disciplined in managing his credit payments.
Regarding your second query, let me ask you something. Are you buying the property with a mortgage?
Welcome to forums.
Your credit will not be affected if you quitclaim the property to the individual at the investment company. An individual's credit is affected only if he hasn't been that disciplined in managing his credit payments.
Regarding your second query, let me ask you something. Are you buying the property with a mortgage?
yes I will be purchasing the property with a mortgage. In researching I have found that if you are approved for the mortgage as an investment property and then quit claim interest of the property to another individual it is not considered mortgage fraud. Is that true?
Hi Englund,
If you're taking out a mortgage on an investing property and then quitclaiming the property to some other person, then it's not a mortgage fraud. This is because when you quitclaim, you are not giving away your responsiblity of paying off the loan. You're just transferring your ownership rights on property to someone else.
Take Care
If you're taking out a mortgage on an investing property and then quitclaiming the property to some other person, then it's not a mortgage fraud. This is because when you quitclaim, you are not giving away your responsiblity of paying off the loan. You're just transferring your ownership rights on property to someone else.
Take Care
If the grantee then refinances the property, I will have then been removed from the responsibility of paying the mortgage?
Yes Englund, if the grantee wishes to refinance the property in his name, then you will no longer have your name on the loan. But for this, the grantee should satisfy the eligibility criteria set forth by the lender. He should have the required financial and credit status so that he is allowed to refinance the loan in his name.
Take Care
Take Care
"In researching I have found that if you are approved for the mortgage as an investment property and then quit claim interest of the property to another individual it is not considered mortgage fraud."
It is not a fraud but as ownership is going to change the person getting ownership will have to refinance the mortgage in his name or it is to be paid off.
It is not a fraud but as ownership is going to change the person getting ownership will have to refinance the mortgage in his name or it is to be paid off.