Does signing over quitclaim deed release me from financial obligation on foreclosed property?

Question: The bank is about to foreclose on my home. Someone had approached me and said that he will settle the debt with the bank if I sign over a quitclaim deed. He also stated that he will immediately take over possession of the house, deal with the bank, the tenant, etc. and I will be able to walk away from the house debt-free. I am very skeptical that this can happen so easily. I am worried that quitclaim deed does not release me from the financial obligation on the property in case the property ends up in foreclosure. How can this person make a deal with the bank? How can I get the bank to release me from my mortgage?

Response: You are absolutely right. Whoever is telling you to do a quitclaim deed is trying to scheme you. While this individual will become the new owner of your property, you will continue being financially obligated to the bank. It will be your credit report that will suffer and essentially you will be the one sued (although the new owner will be sued too for the sake of having his interest in the property cut off). The new owner will not be able to modify the loan or negotiate anything with the bank because the new owner is not the borrower and the borrower is the only person that the bank will deal with. If you want to get rid of this mortgage, sell your property to this individual or any other interested buyer and satisfy the mortgage. If the buyer will need to take out a mortgage, then let it be in their name, not yours. If your property is worth less than the mortgage, then do a short sale. This way, you will also be able to get rid of financial obligation to the bank, but do not, under any circumstances, transfer the ownership of the property to someone else while remaining financially responsible for it! If you want to learn more about your rights in this case and the proper transfer process, consider contacting a knowledgeable attorney.

In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.

The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information. Copyright © 2013 Law Office of Svetlana Kaplun, P.C.

modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer

Advertisements

Leave a comment

Filed under Legal Blog of Attorney Svetlana Kaplun

Comments are closed.