deed of property
I have a friend that wants me to take over payments on her home, she is elderly and the home is in need of some serious repairs and she still has a mortgage on the property. She has decided to abandon the property becuase the payments are very high She wants to give up all her rights to the property. Before I spend thousands on the property to repair it I want to know do we prepare a quit claim deed and I record it. does that release her from the property until I pay off her loan?
1 Answer from Attorneys
Re: deed of property
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I am assuming that your friend executed a note and mortgage. If your friend executes a Quit Claim Deed conveying the property to you (and this existing note and mortgage is not paid off) she will no longer have an interest in the property but will still be personally responsible for making the mortgage payments. If the mortgage payments are not paid, the property will be subject to foreclosure. In addition, the typical mortgage contains a due on sale clause which prohibits conveyances of the property; conveying the property to you would be deemed a default under the mortgage and could also trigger negative actions by the bank holding the mortgage.
I strongly suggest you and your friend consult with a real estate attorney who can suggest some better alternatives to your plan.
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