Posted on: 11th Sep, 2007 05:19 pm
If the Grantor signs over his rights to a Grantee on a Quitclaim Deed, does the Grantor have any further financial responsibility for the home if there is still an open loan/balance due on the property? If the Grantee defaults on the loan, can the Grantor be held responsible?
Yes you will be held responsible. And if there is an existing mortgage then that lender will have a right to the house. Any time a property ownership is transfered all existing mortgages and liens must be satisfied. Think about it if you could do that then noone would pay, they would take a mortgage and then transfer the house to a friend.
Hi,
Until the mortgage is paid off or refinanced by the new owner is his name, the borrower remains on the loan. And if the payments are stopped on the loan then lender can foreclose and sell the house. In such case, owner’s credit will be affected as he is on the loan and the new owner will lose his house.
Grantor will not be held responsible but it will bring down his credit score by quite a bit and hamper his chances of securing new credit in coming years.
Miller
Until the mortgage is paid off or refinanced by the new owner is his name, the borrower remains on the loan. And if the payments are stopped on the loan then lender can foreclose and sell the house. In such case, owner’s credit will be affected as he is on the loan and the new owner will lose his house.
Grantor will not be held responsible but it will bring down his credit score by quite a bit and hamper his chances of securing new credit in coming years.
Miller
I suspect there is more to this. What do you mean by grantee default on loan? If you mean they are paying your mortgage payments you need to get the lender to let them assume the loan OR get a new loan in their name.
Please provide additional information.
Here is what can happen in this scenario. If you are talking to an investor or foreclosure bailout company who is supposed to be helping you out of foreclosure be very careful. Some people will get a struggling homeowner to sign away their rights. The "investor" and I use that term loosely here, will try to sell the house, but if they can't they just back out as they have no responsibility to your mortgage unless they had assumed the loan. Which the lender would have to do and you would have been at the closing to sign the paperwork.
If this is just another shady real estate investor trying to make a quick buck, RUN, and call an attorney.
Also if someone else is making your payment... BE SURE THE PAYMENT IS ACTUALLY GETTING PAID
Please provide additional information.
Here is what can happen in this scenario. If you are talking to an investor or foreclosure bailout company who is supposed to be helping you out of foreclosure be very careful. Some people will get a struggling homeowner to sign away their rights. The "investor" and I use that term loosely here, will try to sell the house, but if they can't they just back out as they have no responsibility to your mortgage unless they had assumed the loan. Which the lender would have to do and you would have been at the closing to sign the paperwork.
If this is just another shady real estate investor trying to make a quick buck, RUN, and call an attorney.
Also if someone else is making your payment... BE SURE THE PAYMENT IS ACTUALLY GETTING PAID
Hi Guest,
The quitclaim deed will only transfer the title to the property. It will not remove the grantor from the loan. So even if he signs over the quitclaim deed, the loan will remain in his name until it is paid off or refinanced by the grantee. And if the loan is not paid off, it will have a negative impact on the credit of the grantor.
The quitclaim deed will only transfer the title to the property. It will not remove the grantor from the loan. So even if he signs over the quitclaim deed, the loan will remain in his name until it is paid off or refinanced by the grantee. And if the loan is not paid off, it will have a negative impact on the credit of the grantor.