A “Quitdeed” can be used to transfer real estate. A divorce can be the cause to transfer ownership rights of your home to your spouse. This process is also used frequently to pass property rights from one family member to another. If the thought of foreclosure is on your mind, then this might be the most important article you will ever read.
There is a misconception floating around that needs to be addressed. If you are close to losing your home because you are behind on payments and foreclosure is just around the corner then using a quitclaim deed will free you of your loan obligation.
This is completely FALSE. Do not believe anyone that tells you that "you will be free of your mortgage or loan obligation if you quitclaim your property".
If you signed the contract for the loan you might transfer ownership rights on your property which means that you no longer own it. However, the lender will still hold you responsible for paying off the loan. Therefore, do not use this process if your intent is to be free of the loan obligation.
This information also applies to transferring your ownership to a spouse that you just divorced. You can transfer the ownership rights, but, if you signed the original loan document, you are still on the hook for the loan.
If you have read this far, then you have done your research, and you know that the quitdeed process is for you.
The real term is Quitclaim Deed and not just Quitdeed. There are two parts to the entire process of completing a quitclaim deed. First you must obtain a form and fill it out correctly. The form must contain vital information regarding the property description and the parties involved. After completing the form, you must take it to a notary and have the signatures validated. The second part requires filing with your local county recorder’s office.
Finally, here is the cautionary part……… Each state and local jurisdiction have their method and form requirements. Therefore, it’s best to obtain the correct form for your state. Should you require a form, prepared by an attorney, for your particular state then this will be the correct form related to your state