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what are the con's to a quick deed?

I can't afford my payments and i have a sister who will take my house. are there con's to a quick deed? by rnelson379 from New Hyde Park, New York. Apr 3rd 2019 Reply

#87 ranked lender in New York - 68 contributions

YES... quitclaim deed is an only transfer of ownership. If your sister doesn't make the payment on the mortgage in a timely manner, it will affect your credit, because you are still on the mortgage. The best option is for your sister to buy the house from yu and get her own mortgage. If there is equity in the property she would not need and downpayment or closing cost. feel free to call me if needed. 516.728.5212

Apr 3rd 2019
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

Much more info needed to advise you but based on the limited info you provided, you would breach your contract if you deeded the home to your sister. When you bought your home, one of the things your lender did register the property with MERS,,, this service scan's recorded deeds throughout the US and notifies lenders when a property is sold or transferred.. On your original NOTE.. you agreed to pay your loan in full if you ever sold it.. This is called the "Due on Sale Clause".. if you deed the property to your sister, then the loan must be paid in full.. if it isn't, then the lender will call the note due and payable in full.. if you don't pay them off, they will foreclose. Typically, you can add someone to the deed, but if you remove all the original borrowers/owners, and deed it to someone else, the lender will find out. Also, a "QuitClaim" deed does relieve you of certain obligations with whomever you are deeding the property too, and the person you are deeding the property to has limited recourse if there is an issue.. this is why lenders require "Warranty Deed's" when someone is purchasing a home using financing. Understand that regardless of the type of deed you use to transfer the property ownership, it does not relieve you of the loan obligations you agreed to when you purchased it. In all reality, if your sister wants the home, she should contact a mortgage company and she can apply for a loan to pay you off. There are rules regarding non-arms length transactions, so it depends on which loan she would qualify for, but if there's enough equity, she might be able to buy it without coming out of pocket. If it turns out there's not enough equity and she does not have the required funds, then there are strategies where you can add her to the title without removing yourself, and then 6 months later, she can refinance to remove you from the property.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Apr 4th 2019
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