Legal Question in Real Estate Law in Georgia

Quick Claim Deeds

My sister and her husband have not so great credit. Next year when they get their taxes they would like for me to buy them a house then do a quick claim deed. I really don't have a problem with that except I am wondering about the mortgage. When I do the quick claim deed, I understand that the mortgage will remain in my name until they try to refinance. So I guess my real question is, what if they cannot get refinanced because their credit is still not so great, what happens then?

Thanks in advance for your reply


Asked on 9/14/06, 3:48 pm

2 Answers from Attorneys
Jon Gottlieb Flynn & Gottlieb, P.A.

Re: Quick Claim Deeds

You will remain on the debt unless and until the lender releases you. If you transfer title of the property to your sister and her husband you will be liable for the debt but you will not own property that you could sell to retire the debt.

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Answered on 9/14/06, 4:10 pm
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Quick Claim Deeds

They basically want you to unknowingly run a scam. They can't afford a house, so they want you to be completely responsible for the debt while they have the property. They don't care that you may be sued for fraud by the lender for falsely representing that you are buying the property for yourself. Meanwhile, you get hit for paying the entire loan. I can't imagine why anyone would participate in this kind of deal, but most of them end up the same way - a big mess. A better idea is to teach them some basic responsibility.

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Answered on 9/14/06, 5:50 pm


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