If I execute a Quit Claim Deed to the Mortgage Company am I still liable for the debt?
04/29/2009 - Debts and Credit - State: ALL #16425
If I execute a quit claim form to the mortgage company will I be liable for the balance on the mortgage?
There are two basic types of deeds: a warranty deed, which guarantees that the grantor owns title, and the quitclaim deed, whih transfers only that interest in the real property which the grantor actually has. The only type of deed that creates "liability by reason of covenants of warranty" as to matters of record is a general warranty deed. A quit claim deed contains no warranties and the seller doesn't have liability to the buyer for other recorded claims on the property. The purchaser takes the property subject to existing taxes, assessments, liens, encumbrances, covenants, conditions, restrictions, rights of way and easements of record. However, a person who obtains a mortgage is still liable for mortgage payments after executing a quit claim deed on the property securing the mortgage should the Mortgage Company elect to pursue a defeicency on the note. The common instrument used for this is a "Deed in Lieu of Foreclosure", although a quit claim deed would have a similar effect.
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04/29/2009 - Category: Debts and Credit - State: ALL #16425
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