You mentioned that your boyfriend would get 1/2 the equity. Hence, when your boyfriend signs the quit claim deed, there should be an agreement that he should get 1/2 of the sale proceeds.
Me & my Husband live in my mother's property and want to take over ownership of it. My mother wants us to take it over also.
We were wondering what the best way to do this was, a sale or quit claim?
She has a mortgage and i was wondering how we handle that, do we have to come to an agreement with her lender, or can she quit claim deed it to us and we can refinance it with whatever company we choose?
Posted: Fri Jul 13, 2007 4:16 am Post subject: RE:
Hi Chrislyn,
Your mother could have sold the property to you through the warranty deed. But as there is a lien against the house, this type of deed cannot be used.
Quitclaim deed will be more effective to take over the property title from your mother. In the deed, your mother will be placed as the grantor and both of you would be the grantee. But the loan cannot be transferred through the deed as it is in your mother’s name. You can refinance it later with a new loan.
There are no risks as such if you make the payments at the specified time. But yes, if there is any default, and you are into any kind of financial hardship, only then it will be affecting your credit and possible you may lose your home also. _________________ Procrastination is the enemy of your financial sucess
Posted: Thu Aug 23, 2007 8:09 am Post subject: quit claim
I am getting a divorce and considering keeping the house that my wife and I purchased 4 years ago together. If she quit claim deeds the house to me, is her name still on the mortgage and will that be considered when she goes to purchase another home?
Yes even after she quit claims the house to you her name will remain on the mortgage. The reason is that a quit claim deed only transfer ownership rights and does not have any affect on the loan. The person quit claiming his/her property interest remains on the loan until the new owner refinances or it is paid off.
Now if she remains on the mortgage as a borrower along with you and considers purchasing another home then she can have problem qualifying for a new mortgage. This present mortgage will show up on her credit report and lenders would consider it as risk to lend because of her present mortgage payment obligation. It will also be affecting her dti ratio and can result in lenders asking for higher interest rates from her.
Do let me know if you have any other questions.
Thanks
Blue _________________ Lets help each other. Try my blog
If her name is on the loan along with you, then merely doing the quitclaim will not get her off the loan. Refinancing only could remove her from the loan.
And if she does not pay the loan or frefinance it, she might face problem in purchasing another home in future. It will be shown on her credit report as default and will thus affect her credit score.
It seems that you have already got a share of property of your own. Now if you wish to transfer your share of the property to your son, you can certainly do it with a quitclaim deed. By signing the deed as grantor, you will be giving up your share of the property to your son, the grantee. The only downside to this is that being the grantor, you may have to pay the applicable gift tax for the transfer of property share if you do not qualify for the lifetime gift tax exemption. To know more on gift tax for transferring property with http://www.mortgagefit.com/discuss/quitclaim-taximplications.htmlquitc laim deed, you may refer to
Does a Quitclaim Deed absolve the grantor of any financial liability if there is still a mortgage due on the home? If the Grantee agrees with the Quitclaim Deed, does he/she take over payments for the loan (home)? If the Grantee defaults on the loan, is the Grantor held responsible?
jenkin7
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