How to Stop a Foreclosure on a Quitclaim Deed
Quitclaim deeds provide temporary relief for homeowners who have difficulty making their mortgage payments. This option can be useful to home owners who are between jobs or experiencing financial hardships. You should be aware of the process and documentation before deciding to use a quitclaim deed. Quitclaim deeds do not free the property owner from his mortgage commitment. The property owner is still responsible for repaying the loan.
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Instructions
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Real estate professionals can inform you about the quitclaim process. Consult a professional. A Realtor or real estate attorney can help you with the quitclaim process. Even if you don't choose to work with them, they can still answer your questions.
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Time is important when executing a quitclaim deed. Gather your loan information. If you decide to work without a real estate professional, you must recover all the loan information and paperwork. You will need your loan account number, quitclaim deed and lender's telephone number. Prepare an explanation of your financial circumstances to convey to the lender.
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Write down all contact information for your mortgage lender. Contact your mortgage representative. Ask to speak to a delinquent payment representative. If the foreclosure process has begun, the delinquent payment department will transfer you to the foreclosure department. If this happens, write down the direct number to the foreclosure department.
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Stay in contact with your lender. Request a loan modification or forbearance. Loan modifications alter one or more of the original terms of your loan to make the payments more affordable. Forbearances help you regain financial stability by temporarily reducing or suspending your loan payments.
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Be ready to complete your loan application. Provide the representative with account and personal information. The mortgage representative will question you regarding the current status of the loan and your financial situation. You must provide your account number and the reason why you are requesting a forbearance or loan modification.
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Carefully listen to the representative for instructions. Complete the application process. The lender will send out a loan application to be completed and returned. The application must be completed and returned quickly to qualify for a forbearance or loan modification.This package will be reviewed before the lender speaks with you about a solution. If you qualify, the current lien holder will be removed from your quitclaim deed.
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Tips & Warnings
Periodically contact your lender to check on your loan application status.
If you don't qualify for a loan modification, you can contact other mortgage lenders as an option.
References
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