What Happens When You Have Quit Claim Deed But Still On Mortgage?

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You have quit claim deed which is a document that conveys your property to another person without retaining any rights of ownership. But, you are still on mortgage with the bank. You also have no money or any other collateral to offer as security. Now what? How will you get rid of your mortgage? What documents do you need to give others so that they don’t think of you as a lender but as the actual owner of the property? All house owners who give their properties on rent, needs to create a legally binding agreement between both parties. The tenancy agreement is known various names in different states and regions: lease agreement, lease contract, or lease contract. It is an important document that sets out things like who can live in the property, rent and other relevant details such

What is quit claim deed?

A quit claim deed is a written document that transfers the ownership of property from one person to another. It is also known as a quitclaim deed. In a quit claim deed, the person who is transferring the ownership does not make any warranties about the condition of the property. So, if there is any defect in the property, the person who has purchased property through quit claim deed will not be eligible for any damage compensation. A quit claim deed is often used when transferring real estate as it has less legal requirements than a regular deed. The person who is transferring the property does not make any guarantees about the property in a quit claim deed. This means if the property has any issues, the buyer does not have any right to claim compensation.

How to get rid of a Mortgage When You Have Quit Claim Deed?

People who want to get rid of their mortgage should go for a deed of release. A deed of release is a written document that releases the existing mortgage on a property. As per the laws in most of the states in the U.S., you can get the mortgage released from the lender by paying off the entire amount that you have borrowed from the lender. If you don’t have enough money to pay off the amount, you can gift it to the lender. If you have quit claim deed and want to get rid of the mortgage, you should register the quit claim deed with the county recorder. After you have registered the quit claim deed, you should send the registered deed to the lender along with a letter stating that you have given the property to another person and the lender should release the mortgage.

What happens when you still have mortgage and quit claim deed?

As you have signed quit claim deed, you have made it clear to the world that you don’t own the property. But, you still have the mortgage with the lender. What happens when you have both the documents? If you have both the documents, you can ask the lender to release the mortgage. The lender will release the mortgage as you have gifted the property to another person. A person who has a legally binding agreement with you will have access to the property. If the person is a tenant, he/she can still stay in the property even if you have quit claim deed. If a person has a lien against the property, quit claim deed won’t change that.

Documents to Prove Ownership After Quit Claim Deed

If you have signed a quit claim deed and the property is still in your name, you should consider changing your name to the new owner’s name. You need to change the title of the property to the new owner. The best way to do this is by using an affidavit of assignment. An affidavit of assignment is a written document that transfers the ownership of property from one person to another. Along with the affidavit of assignment, you should also include the original quit claim deed. The person who has signed the affidavit of assignment will become the new owner of the property, while the person who has signed the quit claim deed will become the previous owner. If you don’t change the title of the property, the person who has signed a quit claim deed will become the owner of the property. The person will have all the rights of an actual property owner.

Conclusion

If you have quit claim deed, you have made it clear to the world that you don’t own the property. But, you still have the mortgage with the lender. What happens when you have both the documents? According to legal experts, a person who has a legally binding agreement with you will have access to the property. If the person is a tenant, he/she can still stay in the property even if you have quit claim deed. If a person has a lien against the property, quit claim deed won’t change that. If you want to get rid of the mortgage, you should go for a deed of release. A deed of release is a written document that releases the existing mortgage on a property. If you have quit claim deed and want to get rid of the mortgage, you should register the quit claim deed with the county recorder. You need to change the title of the property to the new owner. The best way to do this is by using an affidavit of assignment.