Should I sign the Quit Claim Deed?

bethlewis07 · Joined: 10 Oct 2008 Posts: 1 1.42 Dollars($)

My Father-in-Law and I own a home together we purchased last year as a family residence. My company moved me from California to Texas. Since I no longer live at the property, he wants me to sign a quitclaim deed. Also they are thinking about claiming bankruptcy and want me off the deed so that the companies do not come after me. I think that since the loan is still in our names (me and the father-in-law) regardless of the title, I would still be responsible. Should I sign the quitclaim deed?

smithsussane · Posted: Fri Oct 10, 2008 8:23 pm Post subject:

Hi bethlewis!

Welcome to forums!

Signing a quitclaim deed will only take you off the title of the deed. It will not take your name off the mortgage. If you want to take away your name from the mortgage deed, you will have to either go for the process of novation or your father-in-law has to refinance after you quitclaim.

Feel free to ask if you have further queries.

Sussane

jerry · Posted: Sat Oct 11, 2008 2:59 am Post subject:

Hi bethlewis!

Quitclaim has nothing to do with mortgage. If you quitclaim the property to him but he doesn't refinance, the mortgage company will come after you for the loan.

Thanks,

Jerry

Guest 0.10 Dollars($)

Will my assets be tied up in his bankruptcy? There's no intent to not pay the mortgage and the home will probably be sold. In the mean time dies my credit (we are not spouses only in-laws) become affected by his poor choices.

jerry · Posted: Mon Oct 13, 2008 1:57 am Post subject:

Hi beth!

If the property goes into a foreclosure or bankruptcy, there are chances that the mortgage lender may place a lien on your property.

Thanks,

Jerry

jheard · Posted: Mon Oct 13, 2008 6:04 am Post subject:

You will not declare bankruptcy, so it should not affect your credit. However, the bankruptcy trustee may take a portion of the house owned by the co-owner and force a sale of the property.

Never, ever, sign a quitclaim deed if you are still on the mortgage. That means you will still be liable for the mortgage, but not have any ownership. Your best bet is to sell the property.

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