Legal Question in Real Estate Law in Maryland
quit claim deed and foreclosure
I am on the mortgage and deed for a house my daughter lives in. She is also on the loan and the deed. I worry about her choice of friends and people coming and going from the property. She has also been behind alot on her mortgage payments. My question is: If I am able to sign a quit claim deed to the property, but I'm still on the mortgage, what happens if the property goes to foreclosure? Am I better off to stay on the deed, or does it matter? She cannot refinance in soley in her name yet because of her credit. What can I do to reduce my liability?
1 Answer from Attorneys
Re: quit claim deed and foreclosure
You have an all too common problem facing people who, out of good will or family ties, act as guarantors on someone else's mortgage. The problem is that it's your credit on the line, just as much as your daughter's. Deeding the property over to her won't solve your problem, because the lender won't take your name off the mortgage. If the property is foreclosed upon, it will severely affect your credit. You should stay on the deed so you can maintain some control over the property. About the only solution is to closely monitor the situation, and if you daughter appears to be unable to support the property, put it on the market and get whatever equity you can out of it before she defaults.
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