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socalguy
158 Posts |
 Posted - 03/27/2008 : 4:20:19 PM
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A family friend asked me a question regarding foreclosure proceedings I know little about.
This person is facing a foreclosure proceeding.
How does filing a quick claim Deed before a foreclosure proceeding has started come into play with the financial obligation on the loan? |
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PinnaclePeters
1023 Posts |
Posted - 03/27/2008 : 4:21:32 PM
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| Perhaps you mean a "Quit Claim" deed, right? |
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socalguy
158 Posts |
Posted - 03/27/2008 : 4:22:31 PM
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| Quit Claim Deed, sorry |
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dkendall1979
8742 Posts |
Posted - 03/27/2008 : 4:23:38 PM
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It doesn't affect foreclosure proceedings on bit.
quote:
Originally posted by socalguy
A family friend asked me a question regarding foreclosure proceedings I know little about.
This person is facing a foreclosure proceeding.
How does filing a quick claim Deed before a foreclosure proceeding has started come into play with the financial obligation on the loan?
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PinnaclePeters
1023 Posts |
Posted - 03/27/2008 : 4:25:26 PM
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It says that they "quit" their claim to the property as owners, but they still owe the money.
If the person they give their property rights to makes good on the loan, the lender might call off the dogs for a short time, but the note will likely still be called due.
The new owner of the property will still need to refinance to clear the title of that existing lien.
Not a good idea. |
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rtrefflich
2634 Posts |
Posted - 03/27/2008 : 4:29:36 PM
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This used to be a way people bought homes off of foreclosure, you would "cure" the payments by bringing the note current and they home would then go out of foreclosure. The people losing the home would "quit claim" their title to the person "curing" the note and they would either refi or keep the existing note until the bank called it due. It really doesn't make a lot of sense in this market simply because most people losing their homes do not have equity. If you ever saw the guys making "tons' of money off of foreclosures at 3:00 AM on TV this is one of the "secrets" they would sell you for the $400.
I always wanted to know why this millionaire needed my $400 though |
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monarchdad
1750 Posts |
Posted - 03/27/2008 : 4:30:06 PM
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| They were more likely thinking about doing a deed in lieu rather than a QC. |
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monarchdad
1750 Posts |
Posted - 03/27/2008 : 4:32:02 PM
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quote:
Originally posted by rtrefflich
If you ever saw the guys making "tons' of money off of foreclosures at 3:00 AM on TV this is one of the "secrets" they would sell you for the $400.
I always wanted to know why this millionaire needed my $400 though
Because it's much easier to become a millionare selling "how to" advice for $400 a pop than actually doing it. |
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rtrefflich
2634 Posts |
Posted - 03/27/2008 : 4:32:48 PM
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A deed in lieu will completely destroy their credit, just go through a short sale where they have a chance to rebuild it or the regular foreclosure process.
quote:
Originally posted by monarchdad
They were more likely thinking about doing a deed in lieu rather than a QC.
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