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Guest

Is quit claiming to a friend illegal, in order to avoid foreclosure. Say the quit claim is done, & they move in, can the person refinance right away or will they have to wait for a while before that can be done.

livinginnky · Posted: Sun Oct 21, 2007 7:48 pm Post subject:

It will not affect your loan. The bank will still foreclose on you and get the house. However if you sell to your friend the lender has no choice. He will have to pay whatever the lender requires or else lender gets the house.

If you have a year or more and you do a land contract they may be able to refinance it. Here is one more catch though you might not have the right to do a land contract and then the bank can call your mortgage due in full immediately which is just as bad as foreclosure if you can't afford to pay it off.

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi,

You can quitclaim your house to your friend and you need to let the mortgage lender know about it. In spite of that, you still have to pay back the mortgage amount you the lender.

Regarding refinance, your friend can refinance it to his name and pay it off but you can't do it as you have quitclaim the property to your friend’s name.

jenkin7 · Posted: Sun Oct 21, 2007 11:21 pm Post subject:

Hello Apache,

A quit claim deed will simply transfer the ownership of the home and not the financial responsibilities. It will in no way stop the foreclosure.

You must talk to your lender before quit claiming the property to your friend.

liaoyu03 · Joined: 09 Sep 2007 Posts: 166 4.48 Dollars($)

you can quit claim to your friend illegal ,except to pay your all loan back or let your lender know it. if you want to avoid foreclosure, This is illegal.

smaildaytoday · Joined: 15 Oct 2007 Posts: 52 0.00 Dollars($)

Hi, u can do your real property a quitclaim to your any friend. But if your house has been mortgaged for loans,you must have your lender known about it. You can pay back the loans or change your mortgage name to your friend,of course you need agreed both your friend and the lender . otherwise, you can't do a quitclaim to anyone since you have to pay back the loans. For the sake of escaping the mortgage to do a quitclaim is illegal. the refinance, your friend can refinance .

Caron

Hi Smaildaytoday,

You are absolutely correct, quitclaiming a property just to avoid foreclosure (though it's not possible) is absolutely illegal. Transferring a property and that of a loan are two different things altogether.

Apache, it's better to have a straight talk with the lender and seek help through some loss mitigation plans.

Good luck

Guest

I understand the reply & I thank you guys very much but my question more precisely is, after the quit claim is done, how soon can the friend refinance the amount of the loan into his name in order to pay off the current loan.

livinginnky · Posted: Thu Oct 25, 2007 5:25 pm Post subject:

Immediately

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Is quit claiming to a friend illegal.