does a quitclaim deed protect you from receiving bad credit?

Question

my husband and I are going to lose one of our houses due to a bad market. I thought it was quick deed, but apparently it is quitclaim deed...anyway, if I do that will that protect my credit scores, or will the hit still go on my credit as well?

Answer 1

The previous answers are pretty much accurate. A quitclaim deed is just a way to transfer title without "warranting" title; it disposes of any interest that you have in the property. Your payment history is what affects your credit. Now, if you are signing a deed in lieu of foreclosure, you are just keeping the legal costs down to your banker/mortgage holder. You might attempt to negotiate the transaction as to credit reporting......however, best of luck because most won't do this. Depends on what equity in property that might exist...in your case, I would assume doubtful, or you would refinance. Another point might be whether or not you were both on the debt. If you only signed as a non-obligor spouse, not as a co-borrower, the hit won't affect your credit....if it does, because they reported incorrectly, you can get that corrected on your bureau.

Answer 2

What you are probably talking about is a deed in liue of foreclosure, not a quitclaim deed in general.

It is better than foreclosure, especially if you have enough equity to cover the mortgage....but it doesn't protect you like selling the home and paying off the mortgage would.

Answer 3

A quitclaim deed is to transfer property from one person to another, it has nothing to do with your cedit, unless you are transferring the property to a mortgagor. Even in this case, this action may not change anything with your credit situation.

Answer 4

Quit Claim Deed is only a way for you or anyone on title w/ you to quit claim (remove) off of title. It does not protect you in anyways from getting bad credit.