Can One File a Quit Claim Deed Without Refinancing the Mortgage?

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It is possible to file a quit claim deed without refinancing the mortgage, but it does not release you of financial responsibility on the remaining loan balance. A quit claim deed only changes ownership interest in the property, not the financing.

Function

  • A quit claim deed functions to transfer ownership of a property from one person, known as the grantor, to another person, known as the grantee. As a result, you forfeit your interests in and rights to the property, but others who have an interest in the property are unaffected and retain ownership.

Considerations

  • The deed must include a description of the property being transferred and the grantor's signature to be legally binding. The only way to remove your name from the mortgage is to have the grantee refinance the property in his name only.

Warning

  • If you file a quit claim deed without refinancing the mortgage, you need to notify the lender of the ownership change, which could activate the due-on-sale clause of your financing. The due-on-sale clause indicates the loan balance is due and payable immediately. To avoid this scenario, you can utilize a quit claim deed to add the other person to the property title jointly with you.

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