Posted on: 17th Jan, 2007 05:40 pm
will a quit claim deed stop the orignal buyer from making mortgage payments or will this now become the responsibility of the person accepting the quit claim deed?
Hi Gaillady,
With a quit claim only property interest is transferred. It can not transfer the mortgage to the other person. The person who has quit claim his property remains liable to make monthly payments until the loan is refinanced to transfer it in the name of the new property owner.
Before making the quit claim deed you should inform the lender that you are going to change property ownership, the lender will allow for the transfer if the person taking over the property has reliable income source and credit profile, otherwise he may ask for the loan to be paid off.
David
With a quit claim only property interest is transferred. It can not transfer the mortgage to the other person. The person who has quit claim his property remains liable to make monthly payments until the loan is refinanced to transfer it in the name of the new property owner.
Before making the quit claim deed you should inform the lender that you are going to change property ownership, the lender will allow for the transfer if the person taking over the property has reliable income source and credit profile, otherwise he may ask for the loan to be paid off.
David
Hi Gaillady,
When a buyer gets title to the property through quit claim deed, he does not get the responsibility of paying off the mortgage against the home until and unless he assumes the loan.
A quit claim deed does not transfer the loan in the buyer's name. So, if the buyer has not assumed the loan, then he need not pay for the loan. But I guess it's an assumable mortgage and that's why this question has come into your mind.
Thanks,
Sara
When a buyer gets title to the property through quit claim deed, he does not get the responsibility of paying off the mortgage against the home until and unless he assumes the loan.
A quit claim deed does not transfer the loan in the buyer's name. So, if the buyer has not assumed the loan, then he need not pay for the loan. But I guess it's an assumable mortgage and that's why this question has come into your mind.
Thanks,
Sara
Gaillady,
"The person who has quit claim his property remains liable to make monthly payments until the loan is refinanced to transfer it in the name of the new property owner."
In addition to refinance as David informed one another method is also there by which mortgage can be transferred in the name of the other person.
It is known as Novation, where the mortgage rate and the term remains the same and only the mortgage is transferred in the name of the other person. It is an advantage for the new owner of the property taking over the mortgage if the lender allows novation. But let me also tell you that they rarely agree to it.
Gary O'Connor
"The person who has quit claim his property remains liable to make monthly payments until the loan is refinanced to transfer it in the name of the new property owner."
In addition to refinance as David informed one another method is also there by which mortgage can be transferred in the name of the other person.
It is known as Novation, where the mortgage rate and the term remains the same and only the mortgage is transferred in the name of the other person. It is an advantage for the new owner of the property taking over the mortgage if the lender allows novation. But let me also tell you that they rarely agree to it.
Gary O'Connor