Quitclaim A Property Will Not Avoid Foreclosure

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Author: laylnd109

Article source: http://www.articledeshboard.com/. Used with author's permission.

Homeowners are desperately trying to find creative ways to avoid a foreclosure. A common mistake that these homeowners believe is that, if they sign over a quitclaim deed, the foreclosure will not show up on the credit report. There is a misunderstanding of what a quitclaim deed is really all about and how it affects the homeowner transferring the ownership of the property.

What is a quitclaim?

A quitclaim is a transfer of ownership rights of a property without a warranty of title. Basically, a homeowner transfers ownership or financial interest of a property to friends, families, or a third party. Unfortunately, this does not mean that they are removed from the financial obligation with the lender. So, signing over the title to someone else, their name is still in the original loan amount and they are still responsible for paying the mortgage. If the mortgage loan is delinquent it will be a foreclosure on a credit report.

First of all, people in foreclosure can not do a quitclaim to get it off their credit report. Sometimes trying to do this will cause the lenders to speed the foreclosure process. There are sources like foreclosure scammers out there, claiming that they can save homeowners credit or homes by signing over a quitclaim. SIgning this will not benefit the homeowner but actually put them in a worst situation. This will reduce their options to preventing foreclosure if the scammers decide to walk away from the property.

It is better to have control of their property during a foreclosure and only sign over when the property is sold to a buyer. There are a lot of scammers preying on the foreclosure victims that desperately need the help. Signing over a quitclaim can make them a potential victim. Generally, It is best to do the research, and educate yourself before you decide to make a move. Educating yourself with the whole process will help eliminate the scammers and save a lot of headache having to clean up their mess and making the foreclosure process worst.

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