Is quit claim deed possible?

Question

I recently purchased a home in CA and the market dropped on the value of my home by about 60-thousand,and now I cannot afford the home. I have the home up for sale as a (hopeful) short sale and I was recently called by an investor who wants me to quit claim deed the home to him. Is this possible? If so, will I end up owing what is left? What is the best decision?

I owe 315,000 and my realator wants to short sell the home for 259,000. Does that mean that I owe the full 56,000 that is left over? I was told that I would pay around 5,000 which is taxed losses.

Answer 1

U got it
make sure u have the money up front because you assign the deed to him but not the morgage

Answer 2

Do not quit claim your property to this investor. Tell him if he is interested in your property he needs to bring you his offer. He is preying on you not knowing how the process works.

Is your lender approving the short sale? If they are that is good because at least they are trying to work something out with you. If not,and your doing this on your own, watch out!!!!

A true investor would only put an offer in if you had at least 30% equity in the property and you could maybe even get a cash back deal with a real investor.

Is the house listed at the amount you owe on your mortgage? Above what you owe? If its the same, then the lender will be paid off. If its above you may breakeven, but if its below you would still owe the difference between what the lender sold the property for and what you still owe on the mortgage.

Answer 3

I have one question. What does the drop in value have to do with you being able to afford the house? The payment should be the same. DO NOT quit claim the prop to an investor, this is a scam. A quit claim deed take you out of title and does not make him responsible for the payments. And if the lender finds out they could make you pay the balance due now as a sale. This guy is going to try to flip the house before if goes into forclosure, because he is not going to make any payments and does not have to.

Answer 4

Don't know but with the high rate of foreclosed homes and homes that have dropped in value in the area there are many sharks out there.Contact HUD for answers. If you can make the payment, and have a fixed rate of about 7% or lower, stay there. Prices will adjust again eventually. Don't panic. I've read that there will be no real turn around until about 2009.

Answer 5

Your neighbor is puzzled. A quitclaim deed is in basic terms a deed. that's the piece of paper used to place across call. it has similarities to the call of your automobile. The tax place of work will subject a quitclaim deed to the prevailing bidder on the tax public sale. be at liberty to bid on the tax public sale. yet, you could desire to become familiar with the tax deed public sale technique on your state. each and every state is fairly distinctive. it is not something for amateurs.

Answer 6

since i've already answered the other one, i can't asnwer again, so i'll answer this one now. :)

values drop everywhere, i am so sorry you had to go through this. i know its a really hard process. Here's my tips. Please follow them, because someone non trustworthy can strip you of what your house it worth.

i know the investment process inside and out, so here goes.

yes, a quick claim deed is fast, easy, etc. he is going to come look at your home though, and appraise it basically. So know ahead of time what your looking at. Do you need new carpets? how much will it cost? painting, fixtures, tiling, ceilings, outsides, etc. His job is to deduct the price it will cost to fix those things from the price of the house, plus he is going to subtract what you owe. If you haven't paid it, it comes out of the houses worth. Lets say your home is worth 350,000 and you owe 250,000. he is going to immediately say well lets start with 100,000 because that is all you have paid, so he can't pay you back for what you haven't paid. does this make sense?

then he's going to do his appraisal. In order to sell it in perfect condition, he's going to subtract a lot for all the fixings, but know up front what it will cost. if he tells you 10,000 for new carpets, stop him and say "you know, i talked to home depot and they told me the tops it will cost it $4000 to recarpet". Otherwise, if he is not honest, he will up the price on EVERYTHING so you're paying $200 for a new fixture handle.

then he's going to take out his fee. Mine was $10,000 because it is a lot of work, and if he buys it and can't resell it, he's stuck with it. so it's kind of a buffer. but once you sell him everything, it is his, debt and all. He probably won't pay you more than $10,000 for everything. Hate to say it. He'll find everything he can to deduct it. His job though is to work with you.. if you have equity, put a lot of money and time into it, then you hsould get more, it is all dependent on your situation. He will probably turn around and sell it for 200,000 (if it is worth $400,000 right now then think... he is making mad profit, as it the rehabber who will probably buy it for 200,000 then put $40,000 into it and see it for 400,000).

i know this is a lot to take in and i'm sorry. If you have questions, im me or email me. i'd be happy to help. I wish i was there to help you, i lived in chico for 2 years for my college! i love it there! my brother still lives there in fact! i am currently in tracy, land of houses skyrocketing prices and there are quite literally hundreds of investors, so just be careful. A lot of them are ruthless and there for the money. Find one you can trust.

good luck! be smart, and if something doesn't seem right, stop, and research it.

Answer 7

Please, please, please make sure you have all the money up front to pay your mortage off before you do this. He will have full right to your house when you deed the property over to him. You will still be fully responsible for your mortgage