Quit Claim Deeds and Real Estate

by Ross from Utah

Ask Kate: Quit Claim Deeds and Real Estate Question Kate, I made a huge mistake a few years ago and gave up interest on a condo without doing anything about the loan. In essence, I lost the property but the loan is still in my name.

The property management company that now owns it rents it out and doesn't much care when it pays the rent, thus I take regular dings on my credit rating. I've contacted them and they tell me that the only resolution is to pay off the loan. I've talked with FHA and they could care less that the loan requires that the property be owner-occupied.

Kate, what can I do to get out from under this mess?

Kate Answers: Quit Claim Deeds and Real Estate Question

Hi Ross, Yes it is possible to sell your house and remain legally obligated on the mortgage, a not so uncommon predicament homeowners find themselves in.

Follow this link How To Sell Your House Safely - Beware Of Offers That Seem Too Good To Be True for more information right here on my website.

Unfortunately you had not discovered Get-Your-Best-Mortgage-Rate before turning over the ownership to your condo without making sure the mortgage was also paid off. So what now? What are your options? Since you have already tried contacting the lender and FHA to no avail, I think you need legal counsel to understand your rights and obligations.

If you have a trusted real estate agent, you might ask for a referral to an attorney who specializes in quit claim deeds and real estate.

In the meanwhile, I recommend looking over the links at the bottom of this page. They lead to other pages on Get-Your-Best-Mortgage-Rate about guarding and cleaning up credit. I hope you will let me know if you have more questions. So you can find it easily in the future, take a moment right now to bookmark Quit Claim Deeds and Real Estate to your favorites.

Ross, I hope you'll come back and visit often. Help me spread the word. Please share my website with your friends. Remember, all of my information is free!

For more turbo tips, visit Home Mortgage Tips for solutions based on inquiries from other Contributors just like you.

More Quit Claim Deed Help

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

Ask Kate: Will a Quit Claim Deed Save a Credit Score of a Co-signer

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

Best Wishes,

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Transferring Homeownership vs Mortgage Obligation
by: Jakub

I have a home mortgage in my name as well as my brother’s name. I do not live in that home; I left it for my mother. She has been paying the mortgage for the past 3 years herself. My mother has very low credit due to not having any history.

The house was bought for 93k, we did some renovation and it was appraised 2 years ago at 115k. I also need to mention that my brother filed a quit claim deed on the house and he also filed for bankruptcy recently (which did not affect the payment since she is paying it). Since I do not live there and have a wife and a newborn, I was looking for some options to get the house off my name. I wanted to know the following:

1. Is there any way I can somehow place the house in my mother’s name since she has been paying it for so long and can prove it?
2. I also wanted to know if we decided to sell the house and made some money, could my mother apply for a mortgage for a small condo if she had a significant down payment but weak credit.
3. If these options are impossible, what could I do to get rid of the house off my name?

Thank you so much for your answer. Jakub Hartlieb

Hi Jakub, Kate here...

1) Yes, it might be possible to put your mother's name on the title with a deed, depending on your state's requirements. I always advise consulting an attorney first and also a CPA because there can be financial and tax consequences when transferring ownership.

2) The best way for your mother to know if she is qualified for a mortgage is to get pre-approved before shopping for a home. In fact, you should insist on the pre-approval process. Read about the process at Mortgage Pre-Approval - Home Buying the Easy Way.

3) Remember, even if you remove your name from title with an appropriate deed, you still retain the mortgage obligation. I recommend making copies of the checks your mother has written to pay the mortgage. Then call your loan servicer and see if they'd allow your mother to assume the mortgage. You'd avoid refinancing fees!

Best wishes, Kate

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