2007-09-03 11:55:00 · 6 answers · asked by liz w 1 in Business & Finance ➔ Renting & Real Estate
No, if you sign a quit claim deed you give up your ownership rights to the property but you are still legally responsible for repayment on the mortgage. The best thing to do is to have the other person on the loan apply to refinance the mortgage solely in their name then quit claim to absolve your interests.
2007-09-03 18:47:09 · answer #1 · answered by yourmtgbanker 5 · 0⤊ 0⤋
This answer is one of experience. I found out that just signing a quit claim deed does not free you of your mortgage loan responsibilities. I got screwed!! So, I don't want you to. You need to go to the bank and tell them what your doing with your joint partner and he/she needs to re-mortgage the house in his or her name only!!! If I had this advice, I could have saved thousands of dollars. Don't be caught of guard, make them go to the bank. The bank doesn't care if you own the house or not because you are still on the loan and half responsible for it. And guess what? The bank will not take you off the loan if you sign the deed, or later time. Be wise, don't let this one get you.
FYI: if something happens to the house like it burns down or something and you did sign the quit claim deed you would not be entitled to the insurance, you would have to pay your half. The person who gets the insurance claim doesn't have to pay the full amount of the loan off only his or her half. EEK
This one deserves the best answer vote, trust me on this one.
2007-09-03 19:07:41 · answer #2 · answered by JW 2 · 0⤊ 0⤋
No, signing the quit claim deed just means you don't have any ownership in the property any more, it doesn't release you from responsibility for the mortgage. You'd have to be released by the mortgage holder.
2007-09-03 19:00:11 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
No. The mortgage company wants to keep you BOTH on the hook.
Refinancing the loan id the only way to do this.
2007-09-03 20:30:42 · answer #4 · answered by DallasLoanGuy 2 · 0⤊ 0⤋
You would have to refinance and quit claim prior to closing, making sure you are NOT on the new loan.
2007-09-03 19:06:37 · answer #5 · answered by Solstice 3 · 0⤊ 0⤋
Nope, the security instrument must be refinanced removing the other party from the financial responsibility. Please see the website below for some additional information that I hope helps you.
2007-09-03 19:04:38 · answer #6 · answered by Etta P 4 · 0⤊ 0⤋