2006-07-06 11:49:35 · 7 answers · asked by Andrea E 1 in Business & Finance ➔ Renting & Real Estate
Most mortgages contain a "due on sale" clause. This means that if ownership of the property is transferred, the mortgage loan automatically becomes due and payable in full.
If you give a quit claim deed to someone then technically the mortgage loan is due. But I think that most mortgage lenders will not invoke that clause as long as the monthly payments continue. Of course if the new owner chooses to refinance then the original mortgage loan will be paid off.
If the new owner does not refinance, and if the monthly payments are not made, then the lender can sue the original owner of the property (the one who signed the mortgage note) and can also foreclose on the property regardless of who owns it, since they still have a first lien on the property. The new owner will not be personally responsible for paying the loan but they will lose the property.
2006-07-06 13:09:09 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Hello Andrea, I am a Realtor in Santa Rosa California, a Quick-Claim is to add or change something in a deed, contract of a home. I would have to know a little bit more information and the type of situation. You can reach me at juan@sonomacasa.com
Bye and good luck
Juan Barreto
Re/max Central Santa Rosa.
2006-07-06 12:35:10 · answer #2 · answered by dom 2 · 0⤊ 0⤋
A quitclaim is a type of deed or legal instrument used to release one person's right, title, or interest to another without providing a guarantee or warranty of title. I'm not sure how your tying into a mortgage.
2006-07-06 11:54:52 · answer #3 · answered by williegod 6 · 0⤊ 0⤋
The financial enterprise does no longer cancel the generic public sale by way of sellers manipulation of the names on call on the final minute, the "new vendors" take the valuables challenge to the same liens & leases, so till they got here up with the quantities in arrears plus costs, they only spent $10 for no longer something. till you're notified in any different case by employing the financial enterprise, proceed to pay hire and get receipts so which you're actually not in breach of your latest hire. even with the incontrovertible fact that that's possibly sensible to be searching for a sparkling place to pass, by way of fact the financial enterprise won't anticipate your hire decrease than maximum circumstances (e.g. if the hire pre-dated the loan they are foreclosing on).
2016-12-10 05:37:03 · answer #4 · answered by ? 4 · 0⤊ 0⤋
Nothing, it still has to be paid, a QCD only releases your int rest in the property to someone else, if your name is on the note you are still responsible
2006-07-06 11:56:25 · answer #5 · answered by Bert W 1 · 0⤊ 0⤋
quit claim means your giving up all your rights and ownership to that piece of property. Why would you do this?
2006-07-06 11:55:00 · answer #6 · answered by mevanr8x7 3 · 0⤊ 0⤋
you are still responsible unitl the new owner refi's
2006-07-06 11:54:33 · answer #7 · answered by daniel r 4 · 0⤊ 0⤋