QuitClaim Deed Refinance
Limited Time Offer: Refinance to remove another party from a mortgage after filing a quite claim deed and receive up to $500 in credit toward your appraisal. Refinance as fast as 1 day after the quit claim deed has been filed!
Quit Claim Deed (Not Quick Claim) Refinance Tips
A Quit Claim Deed is legal filing where one person, or grantor, may "quit" any claim that they have in any real property with no warranty of ownership, transferring whatever interest or title they may have had to another party. Quit claim deeds are most commonly used by family members to convey ownership of their share of a home to the other party, often in matters of generational succession (parents to children) or separation / divorce (spouse to spouse). Unlike most types of legal deeds, a quit claim deed actually makes no assurances that the person who is quitting claim actually owns any interest in the property they wish to convey their share in. So while there are some assurance to this effect in sheriff's deeds, will deeds, warranty deeds and general deeds of trust, quit claim deeds do not guarantee conveyance of the interest.
Quit Claim deeds do not release the person quitting claim from their obligations under a mortgage, although a quit claim deed is a step in the right direction. In order to remove the party who quits claim from the mortgage, you must refinance the mortgage in the name of the party to whom title or interest in the property has been conveyed. The credit scores, income and assets of the party quitting claim can no longer be used for the mortgage, and this has traditionally meant trouble for borrowers seeking to refinance to remove the party who quit claim. Quit Claim deed refinancing can be a complex situation, which requires sensitivity and specific expertise in handling refinance transactions pursuant to quit claim deeds.
If you have received property or plan to receive property through the execution of a quit claim deed, for example in case of divorce, the only way to finalize ownership of property and mortgage in your own name is to refinance the mortgage once the property is deeded to you, however the overwhelming majority of lenders will not allow you to refinance property unless you have been on title to the property for at least 12 months. Unlike other mortgage companies, we specialize in helping people who have received property by means of a quit claim deed legitimize their claims and substantiate their position by allowing them to refinance as soon as 1 day after they have received title to the property. This is because we permit no seasoning on title refinances for rate & term refinancing. R1 can even offer the opportunity to pull some cash out within 3 months of the quit claim deed's execution. Contact the R1 Special Situations department immediately by phone at (800)515-8443 or via email QuitClaim@RefinanceOne.net for further assistance and advice on refinancing to put property into your name pursuant to a quit claim deed or other grant or gift of equity.
Limited Time Offer: Refinance to remove another party from a mortgage after filing a quite claim deed and receive up to $500 in credit toward your appraisal. Refinance as fast as 1 day after the quit claim deed has been filed!
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Other Info on Quit Claim Deeds from Contributors:
A deed that transfers whatever interest or title a grantor may have without warranty.
Unfortunately, even when a quit claim deed is signed, it does not release the person from the loan.
A quick claim deed is actually called a quit claim deed.
A Quit Claim Deed gives up ownership of your home and associated rights and responsibilities. Beware of unscrupulous companies offering to take over your mortgage. They may offer to charge you rent, leaving you free of mortgage payments. The scam is that the mortgage is never transferred. You are left with high rent payments on top of the mortgage you still legally owe. The new owner--the person to whom you signed over the deed--may elect to legally evict you!
A Quitclaim deed is often used to cure errors of Title such as:
misspelled names, removing invalid names, and to add co-owners.
A Quit-claim Deed is a deed that operates to release any interest in a property that a person may have, without a representation that he or she actually has a right in that property.
If a married person is selling sole and separate property, the title company frequently will ask the seller to provide a quit claim from the spouse. This quit claim reassures the title company that the spouse will not claim half-ownership once the sale occurs.
Couples who are in a divorce procedure often use Quit Claim Deed by one spouse to transfer real property ownership to the other. Siblings who inherited real property also use it to give up interests in the property to one another.
In states such as Texas the law does not recognize quit claim deeds. You would have to use either a special warranty deed or a general warranty deed in place of the quit claim but you are still serving the same purpose.
Why is it called a quit-claim deed? Simply because whoever signs such an instrument quits any interest or claims they have to the subject property.
Title companies which insure title sometimes ask for a spouse to sign a Quitclaim Deed for a property acquired before the marriage to confirm that the Grantor retains no interest in the separate property owned by the other spouse before the marriage. Quitclaim Deeds are also used to clear title issues.
A quit claim deed cannot be used to transfer property to someone who has no ownership in the property.
One thing to remember when using a quit claim or quick claim deed to remove a person from the title of a property is that financial obligations aside from the mortgage are transferred to the people remaining on title. That means, you'll have to pay not only the annual property tax, but in some states even the mortgage payment, homeowner's insurance premium, and the maintenance and upkeep for the property.
Disclaimer: The opinions expressed in the Contributed Articles section of this website may have been contributed by independent third parties and are not necessarily those of Envision Lending Group / Refinance One. Any enquiries regarding the content of these articlees should be directed at (212)537-6026.
