Quit Claim Deed

by Primary Borrower in USA

Ask Kate: Will a quit claim deed help to save the credit score of a co-signer? My mother co-signed on my mortgage several years back at the suggestion of my mortgage broker. Now we are having issues with our house payment and trying to get a loan modification.


If we filed a quit claim deed, would the delinquent payments quit showing up on her credit report?

Kate Answers: Will a quit claim deed save a co-signer's credit score?

I'm sure you know from experience now that co-signing for a mortgage carries risk. Co-signers are equally responsible for mortgage payments. By signing loan documents, co-signers accept full responsibility for timely payments.

Quit claim deeds only transfer ownership of the property. Down the road, if primary borrowers want co-signers removed from the mortgage, a re-qualification process is normally required. Most homeowners end up refinancing.

Monitor Your Credit

It is important for co-signers, and anyone for that matter, to monitor their credit. Because the primary borrower is typically the one to make the payments, co-signers are often out of the loop when financial issues arise. By the time problems are discovered, damage to credit is in full swing.

Keeping abreast of changes to your credit history is vitally important. Follow the links below for more information found on my website regarding your credit.

More Quit Claim Deed Help

How You Could Sell Your House But Remain Obligated on the Mortgage

Ask Kate: Are Credit Score Ratings and Quit Claim Deeds Connected

Ask Kate About Quit Claim Deeds by Olga from Ajax, Ontario

Ask Kate: Quit Claim Deeds and Real Estate by Ross from Utah

Best Wishes,



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Comments for Quit Claim Deed.

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Quit Claim or Refinance Mortgage?
by: Please Help from Redlands, CA

I live in California. My uncle owns a property and the mortgage loan is in his name. But I also have my name on the deed of trust only.

The amount of loan is $280,000 and house appraises for $325,000. He want to sell property to me for $280,000.

What is best way for me to do? should I do a refinance or quitclaim? I don't have the money for down payment but I can qualify the loan he is selling.

Also I don't want him to run into taxes issues. What is the best way? Please help.

Hi Kate here. Remember that quit claim deeds relate to transfer of ownership and mortgages relate to the debt. I calling it owning vs owing!

Some lenders look at family transfer of property ownership as a refinance. Yet other banks will treat the same transaction as a home purchase.

So educate yourself by reading the above page and follow the blue links to the additional Ask Kate letters on quit claims to define your goals.

Then find a lender who understands your intentions and can advise you based on your qualifications and their guidelines.

For answers to your tax questions, contact an accountant.

All the best, Kate

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You can also ask Kate about your mortgage at How to Improve Your Credit Rating with Amazing Success.

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