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treed · Joined: 13 Apr 2011 Posts: 1 1.38 Dollars($)

I have a question me and my husband stay in a 3 flat currently. 2 of the apartments are rent controlled and the land lord has let the building get away from him. He no longer wants the building and presented the option to me and my husband about a quitclaim. I was wondering if we would own the property straight out and have to make his same payments or would we have to be approved for a whole new loan.

gmakerley · Posted: Wed Apr 13, 2011 11:00 am Post subject:

A quit claim deed transfers only what the person owns. If you don't do your homework (check out the true ownership of the property), then you could be facing a situation in which you think you own but don't.

Your most effective way to take ownership of real estate is via warranty deed. Quit claim deeds are used for speed, ease, etc. but mostly in cases where the property is being transferred within friends, family, etc.

It might not be a bad deal, but you don't know the specific situation with the mortgage loan, I have to assume, which puts you in jeopardy also. Be very wary and don't assume anything to be fact.

jameshogg · Posted: Wed Apr 13, 2011 8:28 pm Post subject:

Hi treed,

A quitclaim deed can be used to get the property transferred from your landlord to your name. However, in order to buy the property, you will require a home mortgage. In case, there is an existing mortgage on the property, then you will need a refinance. In order to get a refinance or a new home loan, you should have a good credit score and income.

Thanks

gmakerley · Posted: Thu Apr 14, 2011 12:26 pm Post subject:

Keep in mind that your landlord's mortgage is due and payable in full in the event that he provides you with a quit claim deed proferring ownership. That puts you in a bit of a mess, to say the least. You need to use extreme caution, and find out the specific details surrounding that mortgage.

I reiterate that a warranty deed will protect you; a quit claim deed will not protect you.

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