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?
IF I QC MY HOUSE TO SOMEONE, WILL I LOSE RIGHTS TO MY HOUSE? DON'T I NEED TO PUT MY NAME IN THE GRANTEE AS WELL TO BE MORE PROTECTED?
Hi Mari,
Welcome to the forums.
I guess you want to add someone to the title to your property. So, for that purpose, when you sign the quitclaim deed, you should mention yourself as the grantor and the transferee and you as the grantee. This ensures that the property will be owned by both of you. But the percentages of your and the transferee's share of interest will be different.
It is better that you consult an attorney to prepare the deed for you and get it signed by a notary public before you get it recorded at the office of The Registrar of Deeds.
Thanks,
Sara
Welcome to the forums.
I guess you want to add someone to the title to your property. So, for that purpose, when you sign the quitclaim deed, you should mention yourself as the grantor and the transferee and you as the grantee. This ensures that the property will be owned by both of you. But the percentages of your and the transferee's share of interest will be different.
It is better that you consult an attorney to prepare the deed for you and get it signed by a notary public before you get it recorded at the office of The Registrar of Deeds.
Thanks,
Sara
Can I file a bankruptcy,and it not involve my ex husband and the house I quit claimed to him in the divorce? This was in July of 2006.Thank you.
"Can I file a bankruptcy,and it not involve my ex husband and the house I quit claimed to him in the divorce?"
You must have quit claimed the house to your ex husband as per the divorce judgment. So such transfer of property will not be considered as fraudulent transfer of assets by bankruptcy trustee.
You must have quit claimed the house to your ex husband as per the divorce judgment. So such transfer of property will not be considered as fraudulent transfer of assets by bankruptcy trustee.
Hi Medmaree,
Welcome to the forums.
Why do you want to file bankruptcy? Are you into some debt problems. You can freely share it with this community. May be we can find out some alternative for you.
Thanks,
Jerry.
Welcome to the forums.
Why do you want to file bankruptcy? Are you into some debt problems. You can freely share it with this community. May be we can find out some alternative for you.
Thanks,
Jerry.
Hi,
My parents own a house that I have made improvements on. To ensure my investment they have agreed to give me a 20% interest by putting me on title. Can a quitclaim be used for this? Will this also cause the mortgage to be due?
My parents own a house that I have made improvements on. To ensure my investment they have agreed to give me a 20% interest by putting me on title. Can a quitclaim be used for this? Will this also cause the mortgage to be due?
hi jonathan,
welcome to mortgagefit forum.
yes a quit claim deed can be used to transfer part of the ownership of the house to you. on the deed your parents will be named as the grantors and you the grantee. after is notarized and recorded, you will become co-owner along with your parents.
as the title ownership for the house will change the lender can ask for the mortgage to be paid off. for this reason, you need to contact him first and know if your parents would be allowed to continue the mortgage.
colin
welcome to mortgagefit forum.
yes a quit claim deed can be used to transfer part of the ownership of the house to you. on the deed your parents will be named as the grantors and you the grantee. after is notarized and recorded, you will become co-owner along with your parents.
as the title ownership for the house will change the lender can ask for the mortgage to be paid off. for this reason, you need to contact him first and know if your parents would be allowed to continue the mortgage.
colin
hi maria,
welcome to mortgagefit discussion board.
quit claiming the house will not transfer the mortgage. the deed will only transfer ownership of the house. for transferring the loan it will have to be refinanced in his name.
you should contact your mortgage company and tell them that you wish to quit claim the house and have the mortgage refinanced in your son's name. at the time quit claim deed is made, refinance document will also be created for transfer of mortgage in his name.
as he has a good job he should not have any problem in qualifying for the refinance. but first of all get in touch with the mortgage company & know if your son would be allowed to refinance the mortgage in his name or not.
do let me know if you have any other questions.
thanks
blue
welcome to mortgagefit discussion board.
quit claiming the house will not transfer the mortgage. the deed will only transfer ownership of the house. for transferring the loan it will have to be refinanced in his name.
you should contact your mortgage company and tell them that you wish to quit claim the house and have the mortgage refinanced in your son's name. at the time quit claim deed is made, refinance document will also be created for transfer of mortgage in his name.
as he has a good job he should not have any problem in qualifying for the refinance. but first of all get in touch with the mortgage company & know if your son would be allowed to refinance the mortgage in his name or not.
do let me know if you have any other questions.
thanks
blue
my son and his girlfriend bought a house in march, they now have split up, both names on mortgage...both put in equal amts for the down payment which was only 5%...she has left...he wants to keep the house..they have a piggyback mortgage...he wants to keep the house...not sure if he will be able to assume the 1st mortgage, he is trying...should he just try to refi the whole ball of wax? it is not a va or fha mortgage...will the assumption criteria be more stringent?....what is his best option? credit score is over 700...makes 58,000 a year, trying to get a 2nd job ...HELP
Hi Judy,
Welcome to our forums.
Assuming a mortgage occurs when one buys a home owned by some other person. The buyer takes responsibility of the seller's loan. But in this case, there is only a title transfer taking place. So, the best thing in this scenario would be to refinance the piggyback (may be a cash-out refinance) and pay off the second loan as much as possible because this must be having a higher rate of interest.
It's wise to do away with the higher interest loan first. Your son's credit score seems to be good, and if he takes another job, getting the loan won't be that difficult.
good luck :)
Welcome to our forums.
Assuming a mortgage occurs when one buys a home owned by some other person. The buyer takes responsibility of the seller's loan. But in this case, there is only a title transfer taking place. So, the best thing in this scenario would be to refinance the piggyback (may be a cash-out refinance) and pay off the second loan as much as possible because this must be having a higher rate of interest.
It's wise to do away with the higher interest loan first. Your son's credit score seems to be good, and if he takes another job, getting the loan won't be that difficult.
good luck :)
"my son and his girlfriend bought a house in march, they now have split up, both names on mortgage...both put in equal amts for the down payment which was only 5%...she has left...he wants to keep the house..they have a piggyback mortgage...he wants to keep the house...not sure if he will be able to assume the 1st mortgage, he is trying...should he just try to refi the whole ball of wax? it is not a va or fha mortgage...will the assumption criteria be more stringent?....what is his best option? credit score is over 700...makes 58,000 a year, trying to get a 2nd job ...HELP"
Judy, he should also look at the possibility of assuming (as you said he is looking into it) the first mortgage and refinance the second one in his name.
By assuming the mortgage the benefit would be that the rate will remain the same.
But he will need to calculate which will be more beneficial, refinance both into a single loan or assume the first and refinance the second. Check with which options there is going to be more savings in term of monthly payments and then decide the best option.
It also a fact that lender agreeing to allow the first mortgage payments be assumed by him are difficult. Let us know what happens.
Miller
Judy, he should also look at the possibility of assuming (as you said he is looking into it) the first mortgage and refinance the second one in his name.
By assuming the mortgage the benefit would be that the rate will remain the same.
But he will need to calculate which will be more beneficial, refinance both into a single loan or assume the first and refinance the second. Check with which options there is going to be more savings in term of monthly payments and then decide the best option.
It also a fact that lender agreeing to allow the first mortgage payments be assumed by him are difficult. Let us know what happens.
Miller
Hi Judy,
How long have your son thought of staying in the house?
If he stays in the house for a certain period of time, then the interest on this refinanced loan may help him to cover the closing cost.
How long have your son thought of staying in the house?
If he stays in the house for a certain period of time, then the interest on this refinanced loan may help him to cover the closing cost.
My parents have recently purchased a home in Texas for me and I contributed $20,000. for the downpayment. (They contributed $30,000). I am currenlty making the mortgage payments but would like to have the house in my name for several reasons. I would like to claim taxes on the property since I am the one paying the mortgage on the house, if in the future my parents decide to sell the home, I want to make sure I have rights to the 20,000 down payment on the home and no other sibblings claim any profits on the home. Will a quit deed be the best way to go about it and would I have to refinance the home on my own. What if I don't refinance and just keep paying the mortgage payments as I have?
Hi Maria,
If the title is transferred in your name then the mortgage company can ask for the loan to be refinanced in your name. The reason is that the loan documents had your parents as the borrowers and the home was in there name. But now they will be on the loan while the home would be in your name. So it would be against the terms provided in the loan document.
"What if I don't refinance and just keep paying the mortgage payments as I have?"
You can keep on paying the mortgage without refinancing it in your name but when the lender would come to know that the title ownership has changed he can ask you to refinance the mortgage in your name or pay it off. He also has rights to force sale of your house and recover his dues.
If the title is transferred in your name then the mortgage company can ask for the loan to be refinanced in your name. The reason is that the loan documents had your parents as the borrowers and the home was in there name. But now they will be on the loan while the home would be in your name. So it would be against the terms provided in the loan document.
"What if I don't refinance and just keep paying the mortgage payments as I have?"
You can keep on paying the mortgage without refinancing it in your name but when the lender would come to know that the title ownership has changed he can ask you to refinance the mortgage in your name or pay it off. He also has rights to force sale of your house and recover his dues.