what is the difference between a mortgage deed, quit claims

Guest

we need to get out of debt fast and our inlaws have agreed to "buy us out" of our half of a duplex that we purchased together a few years ago. they still live in one half, we have moved out and are renting it out. can we legally get out of this mortgage with a quit claim deed? (this is what my inlaws are suggesting) or di i need a mortgage or grant deed?

larry · Joined: 27 Jun 2007 Posts: 3328 474.49 Dollars($)

Hi Becky,

Welcome to the forum.

Quitclaim deed does not release you from the mortgage. They will have to refinance the mortgage in their name.

Buy out means your inlaws will give you the money for your share of property. Make sure that they refinance the mortgage when you quitclaim the property to them.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Guest

cant my inlaws just hold on to the current mortgage until the rates drop again? (our current mortgage is lower than what the rates are at now)

larry · Joined: 27 Jun 2007 Posts: 3328 474.49 Dollars($)

Hi Becky,

Welcome back.

That actually depends upon your lender. As long as your in-laws are paying the mortgage, the lender should not have any problems but if they default then you will also be responsible for the mortgage and your credit will also be affected.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Guest

Thanks much for the info help, Larry. It is much appreciated!

larry · Joined: 27 Jun 2007 Posts: 3328 474.49 Dollars($)

Hi Becky,

It is my pleasure that it helps. I think you are going to get lots of more helpful replies too very soon Smile

Why don't you join this community? This is World's largest Mortgage Community where everyone is ready to help each other. I think you will enjoy participating in this community and at the same time earn some $$$

Best of luck,
Larry

jheard · Posted: Wed Feb 27, 2008 8:49 am Post subject:

I would treat it as a straight sale. Give them a grant deed and take a cashier's check from them. Use the proceeds to pay off the mortgage.

gmakerley · Posted: Wed Feb 27, 2008 11:00 am Post subject:

run with what jheard said...if your inlaws can buy you out with a sum sufficient to pay off that mortgage, so much the better. as larry mentioned, you could run the risk of having them simply continue making payments on the mortgage, but please note that i used the word "risk."

jheard's method is cleaner.

Guest

my wife applied for a loan by her self on a propertyin florida ,and the title company made me sign the the mortgage but not the note.am i legally responsible for the debt as it is not on my credit

Caron · Posted: Mon Jan 12, 2009 4:58 am Post subject:

No, as far as I know, if you are not on the note, you are not legally liable for the debt.

Guest

Hello:
My ex husband and I recently divorced - we have two properties together and we have both taken one each and trying to keep from going into forclosures. I am on title on both properties. However, only his name is on the loans. I wasn't working at last time that we did a refi. As part of our marriage settlement agreement, my ex is suppose to do a deed transfer. I wasn't sure if we need to do a quitclaim deed or a grant one.
Our credit is shot right now do to the economy so neither one of us could do a refinance. I'm working with the bank on the home that I have living in and recently did a "Simple Assumption" agreement with them. However, they want to see a recorded deed transfer showing that I have the home now. Although both my ex and I know that he cannot be removed from the debt. Any suggestions? Thanks in advance for your time. Christina

gmakerley · Posted: Fri Feb 13, 2009 2:55 pm Post subject:

no suggestions, christina; however, it seems like the lender you're working with is being pretty decent about this. i'd say comply with what they're asking and be thankful that in this sour economy they're willing to work with you.
when things get better, for both them and you, they'll help you with a refinance, perhaps.

Guest

Thanks George! However, do you know which deed would be better to have recorded?

gmakerley · Posted: Fri Feb 13, 2009 3:24 pm Post subject:

sorry, christina - that's not my area of expertise. however, inasmuch as it's just you and your former spouse, i would think a quit claim deed ought to be sufficient. it's just an opinion, mind you.

jenkin7 · Posted: Sat Feb 14, 2009 12:23 am Post subject: quitclaim and warranty deed

Hi Christina,

You've mentioned you're on the title of the property and that you want him to do a deed transfer. But is your ex-husband also in the title? And is that why you want him to transfer his share of interest in the property? If so, then I think this can be done using a quit claim deed using which one can transfer one's property-share to other and this deed, unlike a warranty deed, doesn't come with the guarantee that the grantor is the original owner of the property or whether the property has any lien on it.

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