Quit Claim Deed with Short Sale

[Lynn Henley]

Is anyone getting the homeowner to sign over a Quit Claim Deed to you? If so, are you then able to negotiate directly with the bank to get the mortgage reduced?

This would be like a Subject-2 transaction, so does the mortgage stay in the homeowner's name? If so, what are the steps to get the reduced mortgage into your name?

Thanks,

Lynn

[David Krulac]

@Lynn Henley

Why would you want a Quit Claim deed? Does not seem to be appropriate for the situation, since the seller owns the property. If they don't own the property what is the point of the Quit Claim deed?

If the idea is to leverage with the bank, I'm not sure that having the deed gives you any leverage, and I can see that if you had the deed and could not negotiate with the bank, you could be up the creek as you would own the property and the mortgage would still be against the property. Even though you did not sign the mortgage with the bank, they could still foreclose on a mortgage debt.

The use of Quit Claim deeds is over used IMHO, and in this state are subject to transfer tax. There are occasions where the QCD is the right way to go, but not often.