Quit Claim Deeds

by Olga
(Ajax, Ontario)

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

Ask Kate at Get-Your-Best-Mortgage-Rate.com
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

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Ask 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.

Best wishes,

Ask Kate

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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Olga, please come back and visit often. I hope you'll also share Quit Claim Deeds with your friends. I depend on word of mouth!

Comments for Quit Claim Deeds.

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Do I Need a Quitclaim Deed
by: Shantel from Charlotte, NC

Kate, I am married and am now seeking a divorce after 1 year of marriage.

I purchased my home during our separation. When I closed on my home, I stated that I was single and financed my home on my own.

Since we were separated, do I need to have a quitclaim deed to ensure that he has no rights to the property?

Also, what will happen if I can not locate him in order for him to sign and get the paperwork notarize?

Hi Shantel, Kate here...

How a home buyer holds title can differ depending on the state where the home is located.

The fact that you took title as a single person when in fact you were married may or may not be a legal issue. I really couldn't say.

If your divorce attorney is well versed in real estate, I recommend asking her or him about the quit claim deed and the title to your home.

Best wishes, Kate

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