Quit Claim Deeds
We are going through financial difficulties. We just heard about quit claim deeds. If you file a quit claim deed, will the bank (if they agree) take title ownership of the home BUT keep the mortgage loan in our name? Or does that get removed?
Or, in the alternative, does the bank allow you to remain in your home as tenants and pay 'rent' or are you required to leave so they can sell the house?
Kate Answers: Quit Claim Deeds
Dear Olga, Please keep in mind my experience with quit claim deeds pertains to US mortgages. Hopefully though what I have to say is helpful also to Canadian mortgage and banking practices.
Be careful! Quit claim deeds can transfer ownership of a real estate but do not release the homeowner from the responsibility of a mortgage. This is crucial information for all homeowners especially during the current financial crisis.
No one wants to unwittingly give away their home ownership. However it would be simple to do so using quit claim deeds and yet still be saddled by monthly mortgage payments. So don't miss this Real Estate Investment Advice
because it is possible to sell your house AND remain legally obligated on the mortgage.
More Quit Claim Deed Help 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-signerAsk Kate: Quit Claim Deeds and Real Estate by Ross from Utah
I have also included some links to my guide on mortgage modification and avoiding foreclosure at the bottom of this page. I hope my guide is useful.
PS If you still have questions regarding Quit Claim Deeds, write me at Ask Kate where every question is a good question.
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