Posted on: 10th May, 2006 11:19am
Quitclaim deed is a legal document using which you can convey your share of property-interest to another person. The deed indicates that the title is conveyed from the grantor (transferor) to the grantee (transferee). But it does not guarantee that the grantor holds the legal rights of ownership. The deed also does not imply that the title is free of liens. The quitclaim deed merely states that there has been a transfer of interest from one individual to another.
Thus, when you transfer property rights, a quitclaim deed serves your purpose. But you cannot transfer mortgage debt or any financial obligation through the deed. If there is a mortgage on the property you wish to transfer, you'll have to pay off the debt prior to the transfer and make the title free and clear. Otherwise, you'll have to transfer the loan as well.
In order to transfer a mortgage to the grantee, you'll have to convince the latter to refinance the loan in his/her name. And, at the time of refinance closing, you can sign on a quitclaim or grant deed in order to transfer the property to the grantee. Alternatively, you can transfer the title first and then have the grantee refinance the mortgage in his name. But before you do so, get it in writing from the grantee that he'll refinance as soon as you convey the title. Otherwise, you'll (the grantor) be left to pay off the loan entirely without having the property in your name.
Another way by which you can transfer mortgage debt while quitclaiming property is Novation. To know How novation works , refer to a forum discussion on this topic.
a friend of ours is having financial difficulties and is behind in his house payments, he is wanting to do a quit claim deed transfer to us and we would take over the house payments to bring it up to date and finish paying for it. are there legal complications in doing this since he still owes money? should we go to the bank instead?
Hi,
If you quit claim, you would still remain liable for the payments.
Don't quit claim until and unless your brother agrees to refinance the mortgage in his name.
Otherwise you will be in problem.
If he is not agreeing to pay the mortgage, then ask for the house to be sold and the mortgage be paid off from the proceeds of the sale and let him keep the balance from the proceeds of the sale.
tim
If you quit claim, you would still remain liable for the payments.
Don't quit claim until and unless your brother agrees to refinance the mortgage in his name.
Otherwise you will be in problem.
If he is not agreeing to pay the mortgage, then ask for the house to be sold and the mortgage be paid off from the proceeds of the sale and let him keep the balance from the proceeds of the sale.
tim
hi lily,
since you are the cosigner, you need to make payments only when your brother fails to pay down the unpaid debt. your brother actually is responsible for making monthly payments on the loan. so, you need to talk to him regarding this and also contact the lender. request the lender to talk to your brother. otherwise, if you cannot convince him, you might end up paying the outstanding debt.
for your second question, you can approach an attorney and have a quit claim deed prepared after explaining your situation. but do you have your name on the title? if you don't have any ownership interest on the home, you need not sign a quit claim deed. the lender can ask you for payments even after you quit claim your share of interest, if any, in the property. this is because the note says that you are the cosigner.
thanks,
caron.
since you are the cosigner, you need to make payments only when your brother fails to pay down the unpaid debt. your brother actually is responsible for making monthly payments on the loan. so, you need to talk to him regarding this and also contact the lender. request the lender to talk to your brother. otherwise, if you cannot convince him, you might end up paying the outstanding debt.
for your second question, you can approach an attorney and have a quit claim deed prepared after explaining your situation. but do you have your name on the title? if you don't have any ownership interest on the home, you need not sign a quit claim deed. the lender can ask you for payments even after you quit claim your share of interest, if any, in the property. this is because the note says that you are the cosigner.
thanks,
caron.
I am recently married and both of us own a home. One in Wa state and one in Oregon. We are currently trying to sell the home in Oregon. After it sells, we will sell my house in WA and buy a home together in WA. Would a quit claim be the best way for each of us to put names on each others property until we sell both properties? We are mainly concerned about how we would be affected is something tragic were to happen to one of us - not wanting to have to deal with probate. I know we can do a community property agreement for WA state, but Oregon doesn't have such an instrument. Your help would greatly be appreciated.
Hi,
You can make a ladybird deed for each of the properties. The advantage you will get is that you will be able to avoid probate in case something unforeseen happens to anyone of you.
You can make a ladybird deed for each of the properties. The advantage you will get is that you will be able to avoid probate in case something unforeseen happens to anyone of you.
I would like to add that you can also make a living trust or have property owned in joint tenancy; these two methods can also be used to avoid probate procedure.
Kristina
Kristina
What is a ladybird deed?
Hi Alice,
It is also called Enhanced life estate deed.
By making such a deed you will retain a life estate on the house with the right to sell the property any time you wish to.
And if something happens then there is no need for going through probate procedure. While with a quit claim deed probate would be necessary.
For complete information on this type of deed, have a look at a previous community discussion on this topic: http://www.mortgagefit.com/know-how/ladybirddeed.html
Thanks
Blue
It is also called Enhanced life estate deed.
By making such a deed you will retain a life estate on the house with the right to sell the property any time you wish to.
And if something happens then there is no need for going through probate procedure. While with a quit claim deed probate would be necessary.
For complete information on this type of deed, have a look at a previous community discussion on this topic: http://www.mortgagefit.com/know-how/ladybirddeed.html
Thanks
Blue
my husband and i bought the house in 2005 under my sister n laws name since we are not us residents yet...we've been paying the mortgage since day 1...last august 2006, my sister in law signed a quit claim deed...can we refinance now even if its not a year yet since we assume the ownership?..we really wanted to have the name of the house under our name only...thank you.
As you are using it as your primary residence the lender will allow you to get the mortgage refinanced in your name. But you should get in touch with the lender and get confirmed about it. Most probably he will have no problems in accepting your request for a refinance.
It is better to refinance when market rates are around 1.5-2% below the interest rate on your existing home loan. Also, it is a general rule to refinance after a certain period of time so that you are able to benefit from low rates and can recover the closings costs paid for the refinance.
You need to calculate as to after how many years you can recover the costs if at all you are interested to recover it. Otherwise you can choose to refinance. But does your loan have any prepayment penalty clause? Also, check out your loan documents to find out if the lender has imposed any condition regarding the time period after which you can refinance.
You need to calculate as to after how many years you can recover the costs if at all you are interested to recover it. Otherwise you can choose to refinance. But does your loan have any prepayment penalty clause? Also, check out your loan documents to find out if the lender has imposed any condition regarding the time period after which you can refinance.
You can add your name to the property-title by a quit claim deed.
am buying my parent's house. i need to know if there is a way to get my dad to transfer the mortage and deed to me. or can he refiance and have the mortage put in my name. Last thing would his name still be on the mortage. help me
Hi Idona,
Refinance is better option for your situation. It will transfer both the mortgage and deed into your name. After removing your dad name from the title, he is not any more liable for the mortgage payment.
Thanks
Refinance is better option for your situation. It will transfer both the mortgage and deed into your name. After removing your dad name from the title, he is not any more liable for the mortgage payment.
Thanks
when do you need to used both qick deed and warranty deed//my understanding is the qick deed you sign over your right but the mortage which will be still in you name and warranty deed sign over the title or deed? I want my home out of my name with no strings attach and my sister is willing to take over the payments
Hi Kay,
Welcome to Mortgagefit discussion board.
These two types of deeds are used in property transfer. But there is a difference in when they can be used.
Using a warranty deed the seller or grantor provides warranty to the buyer against any type of title defects and that the title is clear of any type of liens. While a quit claim deed just transfers whatever interest the grantor has and does not provide any warranty against defects to the title.
Now in your situation as there is a mortgage on the house, a warranty deed cannot be used as using such a deed you will not be providing your sister a clear title. You will need to use a quit claim deed instead.
On the quit claim deed you will be named as the grantor and your sister the grantee. Before transferring the house to your sister contact the lender and discuss this issue. You need to know if he will allow the mortgage to be refinanced in her name or not. If he does then you will not have any obligation left over the house or the mortgage.
You have posted a very similar question in this section also, please click here to read what other members have commented upon it - http://www.mortgagefit.com/predeal/about6595.html
Do let me know if you have any other questions.
Thanks
Blue
Welcome to Mortgagefit discussion board.
These two types of deeds are used in property transfer. But there is a difference in when they can be used.
Using a warranty deed the seller or grantor provides warranty to the buyer against any type of title defects and that the title is clear of any type of liens. While a quit claim deed just transfers whatever interest the grantor has and does not provide any warranty against defects to the title.
Now in your situation as there is a mortgage on the house, a warranty deed cannot be used as using such a deed you will not be providing your sister a clear title. You will need to use a quit claim deed instead.
On the quit claim deed you will be named as the grantor and your sister the grantee. Before transferring the house to your sister contact the lender and discuss this issue. You need to know if he will allow the mortgage to be refinanced in her name or not. If he does then you will not have any obligation left over the house or the mortgage.
You have posted a very similar question in this section also, please click here to read what other members have commented upon it - http://www.mortgagefit.com/predeal/about6595.html
Do let me know if you have any other questions.
Thanks
Blue