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.
Unless your ex refinances the mortgage in your name, you won't be able to get rid of the mortgage payments. So, it will be mentioned as an open mortgage in your credit report. You should contact your ex and ask him to refinance your mortgage.
Thanks
Welcome to forums!
If you sell off the property, you will have to pay off the mortgage dues with the help of that sale proceed. if you don't do so, the lender may not allow you to sell the property.
Feel free to ask if you've further queries.
Sussane
If the property is in your husband's name, then he can sell off the property without your permission.
Welcome judy,
Signing a quitclaim deed won't absolve him of his mortgage responsibilities unless you or your daughter refinances the mortgage.
Since I am buying her in cash, I will continue with the same loan, how can I remove her from the loan so she can sign a quick claim deed only on my name?
welcome to forums!
to guest,
if you sign a quitclaim deed and transfer the property to someone else, you will lose the ownership of your property. thus, you won't have the rights to sell off the property.
to hcjax,
signing a quitclaim deed will only remove her name from the property deed. it won't remove her from the mortgage. you will either have to refinance, assume or go for a novation to get the mortgage transferred in your name.
feel free to ask if you've further queries.
sussane
Welcome to forums!
If your daughter's name is not mentioned on the mortgage docs, then she is not liable for paying the mortgage payment. However, it is true that non-payment of mortgage will lead to foreclosure and your daughter may lose the property.
Feel free to ask if you've further queries.
Sussane
If I am transfering the deed in a property for $37K in cash plus the refinancing of my mortgage so that my partner assumes my responsibility is it normal to only have the $37K mentioned in the deed and not the remaining $148K.
Thanks.
Boris.
Your husband will have to sign a quitclaim deed and transfer the property to you so that you can get the property in your name. Then you can apply for loan modification. However, chances of loan modification could have been higher if the loan had been in your name solely.
Welcome Boris,
As far as I know, you can mention the 37k in your deed. However, it will be better if you could contact a real estate attorney and take his opinion in this regard.