Posted by Sheik on May 14, 1999 at 13:08:32:
This info is incorrect!!
Deeding the property has nothing to do with loan liabilities!
Sheik
Question on quit claim - Posted by wayne-fl
Posted by wayne-fl on May 14, 1999 at 11:19:00:
I have a property owner who is in foreclosure. If she quit claims property to me is she free from all responsibility for 1st and 2nd note on property and taxes?
Ask any divorce lawyer! - Posted by CarolFL
Posted by CarolFL on May 15, 1999 at 09:51:28:
This is why so many spouses (ex) end up still responsible for a mortgage when they QCD a house to the other party in a divorce. They think the relinquishing of any claim they may have to the property absolves them of liability. Wrong, as stated above. (below)
Carol
Depends on your state / No-ish answer - Posted by Sean
Posted by Sean on May 14, 1999 at 18:01:19:
It depends on your state. For example, in my state if it was a purchase money mortgage (with a few exceptions) she is not personally liable for anything should the house go into foreclosure … BUT
If it does go into foreclosure her credit will surely suffer even if she is no longer the one making the payments on the loans. As for property taxes, they never go after the owner, just the property. In fact, where I am the first trust deed usually cures delinquent property taxes, ads it to your loan amount and sends you a very nasty letter.
Quit Claim Deed conveys interest - Posted by NJDave
Posted by NJDave on May 14, 1999 at 15:54:21:
A quit claim deed simply conveys interest SUBJECT TO.
The mortgages still encumber the property, the mortgage notes are evidence of the Borrower’s promise to repay the debt secured by the mortgages.
In this case, the Borrower is still responsible for repaying the mortgage loans irrespective of her conveyance via Quit Claim Deed.
Re: Question on quit claim - Posted by JPiper
Posted by JPiper on May 14, 1999 at 12:27:47:
No…she is not. Deeding a property to you has nothing to do with her liability pertaining to the loans. You take title subject to the loans. This means you own the property, but are not responsible for the loans.
Obviously you would not want to take title unless you had the intent to clear up the delinquencies on her loans and property taxes.
JPiper
Re: Question on quit claim - Posted by Rick in Denver
Posted by Rick in Denver on May 14, 1999 at 12:17:51:
Yes! And if they are Quit Claiming the deed to you, then YOU are responsible for 1st, 2nd, taxes, court costs, advertizing, att. fees etc.etc. etc.
Hope this is help but not discouraging. If it does not cost too much to bring prop current (equity ratio). Then do it. Hold it, Rehab it, Rent it, L/O it, Flip it. Depends on what your into.
Good Luck
Rick in Denver
When in doubt listen to JPiper - Posted by Mark (stl)
Posted by Mark (stl) on May 14, 1999 at 20:34:27:
Once again he is right on the money. She can also give you a quit claim deed without even owning the property. be careful
Rick You’re WRONG - Posted by phil fernandez
Posted by phil fernandez on May 14, 1999 at 14:36:35:
Rick,
That is incorrect information. As Piper said above, you would be taking the property subject to the existing mortgage.
The person that signed the loan with the bank on the existing mortgage is still on the hook until he either pays off the mortgage or the bank releases him from the obligation. The second scenerio is highly unlikely.