Posted by JT - IN on May 07, 2001 at 22:04:43:
The bank doesn’t care about this, as the quitclaim has no effect on absolving the quitclaimer (grantor) as to any liability for complete repayment of the note, regardless if they have any ownership remaining. They are more like a co-signer (guarantor) at this point, being responsible for any/all payments that may be missed.
Additionally, this does not trigger a due on sale situation, as long as the person they are quitclaiming to is on the original note and mortgage.
Just the way I view things…
JT - IN
Quit Claim and the bank - Posted by Charles
Posted by Charles on May 07, 2001 at 20:41:58:
Does it matter to a lender if one of the people on the title signs a quit claim deed to remove his name?
I know he will stay on the note. He has not lived in the house or contributed to the payments since the closing. Now with a formal divorce pending he is willing to sign away his interest.
It seems to me that if the payments are kept current and both names stay on the note the lender wouldn’t have anything to say about it. But I just want to check.
This is an FHA loan, if that matters.
Thanks for any input.
People wrongly think that… - Posted by David Krulac
Posted by David Krulac on May 07, 2001 at 22:19:29:
a quit claim deed removes their financial obligations by the note and mortgage…it does NOT.
Re: Quit Claim and the bank - Posted by Kiersten
Posted by Kiersten on May 07, 2001 at 21:04:20:
I had a friend do this–she remained on the note (of course) but quit claimed the property to the ex. It was also FHA. Can’t imagine this would vary by state–she was in FL. The deed is still encumbered by the mortgage so I don’t think the lender really cares–it still “holds” the property until the debt is paid regardless of who’s names get added/removed from the deed.