Posted on: 03rd Feb, 2007 01:05 pm
Is a Quit Claim the proper document when holding property/land as collateral for a loan?
sally, i think you are asking that if someone gives you a property does use of a quit claim deed will be ok or not.
yes quit claim deed can be used for property transfer but the lender should be aware the title ownership is being changed.
yes quit claim deed can be used for property transfer but the lender should be aware the title ownership is being changed.
If the property is transferred to you using a quit claim deed, lenders will accept the use of such deed as a valid means of title ownership transfer in your name. After your have the ownership you will be required to have the loan refinanced in your name from its original borrower. It will also depend upon the lender whether he approves such change in title ownership. Most lenders will base their decision on your credit profile, income level & other criterion.
Warren Teitelman
Warren Teitelman