A quitclaim deed is a simple but serious real estate document. It is not fast pretense writing, as some mistakenly call it. It is as the term implies, where the signatory relinquishes their rights or ownership of the land. The process is easy, but the effects are long lasting. So be careful.
Once you sign this document, you will lose your rights to the land. So make sure you have the advice of a real estate attorney before you sign. But if you have decided to do this, you need to follow some steps. The steps are easy.
Call your local title company. There are several good companies around and you should have no problem finding one in your area. You can also talk to a trusted real estate agent and ask who they would recommend.
The title company will arrange the entire process for you; They will order all the documents and have a notary public available to witness your signing. There is a fee for this service and you will also have to pay the notary.
Divorce is one of the reasons people go through this deeding process. People who were married and owned real estate as co-owners will, in most cases, decide to release one of the co-owners from the property title. One of the parties may give the property to the other co-owner without compensation, or he or she will want to receive money in exchange for the delivery of the property.
Recently, this deed transfer method has been in the news because it has been associated with land fraud. People facing foreclosure agree to turn their property over to unscrupulous people who convince homeowners that if they turn over their property, they will avoid foreclosure.
The problem is that the owner is still bound by the terms of the original mortgage loan. The lender still expects the home loan to be repaid, and the home is the collateral for the loan.
Once title to the property is transferred to someone else, the original owner no longer has collateral for the original loan, and still has legal financial responsibility owed to the lender. The person who convinced the homeowner to transfer title then sells the land to another buyer and keeps the equity in the home.
This is why you need to speak with a real estate attorney before signing any land deal. You can also contact your local department of consumer affairs for more information on these types of scams. But if you are facing foreclosure, you need to realize that there are no simple fixes.
If you are under water with your mortgage loan; meaning you owe more on the property than it’s worth on the open market, you can’t just stop claiming your home to avoid financial liability. Don’t be fooled by someone trying to get you to transfer your title.