Posted on: 10th Aug, 2007 09:02 pm
I have been trying to sell a house for nearly one year. I found a buyer who will take over payments, but wants a quitclaim deed immediately. I've exhausted all my finances, I have nothing left to make mortgage payments. I was going to tell the lender to foreclose. So I'll loose the house either way, but I'm concerned about liability if I sign the quitclaim deed. I just want to make sure if I sign this deed over to the buyer, I'm done with the lenders.
hi marvin,
if you sign a quitclaim deed, you will be relieved of any liability regarding the ownership of the property to the grantee. as a quitclaim deed does not guarantees that the grantor has clear title to the property, you will not be liable for anything in the future.
but mere signing the deed will not relieve you of the loan as the quitclaim deed does not transfer the loan. if the grantee is ready to bear the loan payments, then the lender may ask to refinance the loan in his name as the title was held differently from the time the loan was taken.
if you sign a quitclaim deed, you will be relieved of any liability regarding the ownership of the property to the grantee. as a quitclaim deed does not guarantees that the grantor has clear title to the property, you will not be liable for anything in the future.
but mere signing the deed will not relieve you of the loan as the quitclaim deed does not transfer the loan. if the grantee is ready to bear the loan payments, then the lender may ask to refinance the loan in his name as the title was held differently from the time the loan was taken.
hi marvin,
i personally suggest not to go for quit claim deed. its better talk to lender and refinance the loan in the buyer's name.
i personally suggest not to go for quit claim deed. its better talk to lender and refinance the loan in the buyer's name.
Marvin,
"I just want to make sure if I sign this deed over to the buyer, I'm done with the lenders."
Even after signing the deed over to the buyer you are not done with the lender until buyer refinances the mortgage in his name.
Buyer has agreed to take over the payments so talk with your lender about it and inquire whether the mortgage can be refinanced in his name or not.
If refinance would be possible then you will be relieved of the payments and no need to look at foreclosure as an option. It is good that you have found a buyer for the house. It will help you save your credit which could have taken a big drop if you had to opt for foreclosure.
"I just want to make sure if I sign this deed over to the buyer, I'm done with the lenders."
Even after signing the deed over to the buyer you are not done with the lender until buyer refinances the mortgage in his name.
Buyer has agreed to take over the payments so talk with your lender about it and inquire whether the mortgage can be refinanced in his name or not.
If refinance would be possible then you will be relieved of the payments and no need to look at foreclosure as an option. It is good that you have found a buyer for the house. It will help you save your credit which could have taken a big drop if you had to opt for foreclosure.