Do you know about - Using a Quitclaim Deed to change Legal proprietary of a asset to Avoid Foreclosure
Quit Claim Deed! Again, for I know. Ready to share new things that are useful. You and your friends.One tasteless misconception that homeowners can have during a foreclosure situation is that they can somehow exchange ownership of a property and that this will stop the foreclosure in its tracks. Nothing could be added from the truth, however, and simply signing over the deed to the house to a third party will put the owners in a much more vulnerable situation than when their own names were on the title. Using a quitclaim deed or other exchange document will also do nothing to make the bank end its lawsuit to take the home.
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Transferring ownership of a house in foreclosure does not relax the traditional borrowers of their obligation and responsibility to pay the mortgage that is secured by the property. When they purchased the house, they promised to pay back to the bank a set estimate of money at a clear interest rate, and transferring the deed will not turn the fact that the house is collateral for the mortgage loan. The owners may be able to exchange ownership of the house at a later date, but their traditional promise to pay the bank or face the loss of the property will not be altered.
There is also a danger that transferring the title into someone else party's name will initiate a part of the mortgage called the "Due on Sale" clause. This means that, if the homeowners exchange ownership at any time before they have paid off the mortgage in full, the entire remaining estimate of the loan will be due immediately. Because most deed documents state the notice paid for the property, banks view this as a sale of the house, even if it is only for a nominal estimate like . Such transfers will initiate the Due on Sale clause and the homeowners will still have to find a way to pay back the loan, or the house will be foreclosed and auctioned off.
It is also foremost that homeowners be aware of the fact that many foreclosure scam artists rely on such transfers in order to steal homes from desperate families. They sell foreclosure victims on being able to stop the process just by transferring ownership of the house to a third party, into a land trust, land grant, or other "creative" entity. At that point, the homeowners typically agree to paying the scammers rent to continue living in the house, all the while ignorant of the fact that the bank is lasting the foreclosure process and will evict them after the sheriff sale. The homeowners are at last evicted with severely damaged credit, while the bank takes the house, and the scam firm steals money and gets away with no damage to their own credit.
Transferring ownership of a house while facing foreclosure is roughly never a good idea unless a sale or refinance of the property is also taking place. The defaulted mortgage must be paid off in full or at an agreed price in order for the foreclosure to be ended. If the homeowners are simply executing a quitclaim deed in a misguided effort to save the house from foreclosure, they will swiftly comprehend that this does nothing to work on the traditional mortgage, and will only leave them in a potentially much worse situation.
If title is transferred out of the homeowners' names and the mortgage is not paid off, there is a good chance that the situation will go from bad to worse. They will no longer have control over the property, and the Due on Sale clause may push up the time frame in which they need to pay off the mortgage. In any event, though, homeowners need to keep their eyes open for inherent scams and make sure they understand that transferring title does not stop foreclosure unless the defaulted mortgage is also paid off.
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