QuitClaim-giving a house that has a mortgage to someone

Guest 0.10 Dollars($)

Hi all,

I had a house quitclaimed to me to sell that had no mortgage in 2006. I then took the proceeds from that sell and used it as a down payment for another piece of real estate. This one carries a mortgage of about half the appraised value.

Flash forward to today and I need to cash out that value. I see three options

-refinance the house(can only pull out 80%)
-sell the house myself(it may take years in this market)
-give the house away(but there is a mortgage)

What would/could you do in such a situation?

sara · Posted: Sun Mar 23, 2008 10:18 pm Post subject: RE: cash out home equity

Hi guest,

Welcome to the forums.

What type of mortgage do you have in the property? Will you be able to sell the house at more than what you bought it for? You need to find out out how well homes are selling in your area. If they are selling off at fair enough prices then go for a sale or else refinance. However, I hope you'll pay off the mortgage when you sell or would you like the buyer to assume our loan?

If you'd like to repay the loan from the sale proceeds, then you could need good amount of proceeds to keep aside the extra cash for you. Otherwise refinance with a cash-out option. But see to it that the rate that you get now is lower than the existing rate on your loan.

Take Care

gmakerley · Posted: Mon Mar 24, 2008 8:52 am Post subject:

give it away??? i dont quite comprehend that possibility.

no matter what, you are still liable for the mortgage on that property until the debt is paid in full. giving it away won't make the mortgage go away.

as to options, i am in agreement with sara.

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