Quit Claim? How Does It Work?
This is how I understand a quit claim:
a legal document that forfits a persons rights and intrest in a property. am I right? so here's the question:
can a person quit claim their property while they still owe on their mortgage? if so what happens with the mortgage?
Thanks
Josh
[addsig]
yeah, they can. but they still owe on the mortgage.
So they quit claim to me, I make their payments, they let me because their credit can't get worse anyway, then I try to sell quickly or at least refinance to lower the rate. Who does the bank come after if I failed to make their payments?
Josh
They still owe the debt. You own the house. The risk is they can file bankruptcy.
Most title companies will not issue a title policy if a quit claim deed is in the chain of title. I would not use that type of deed at all. Either use a simple warranty deed or a special warranty deed or worst a deed without warranty. All three are a little bit different and the seller probably would not even know the difference. Hope this helps some
Thank you,
Ted P. Stokely Jr[ Edited by rajwarrior on Date 11/13/2003 ]