4 thoughts on “quit claim i’m gonna co-sign a real estate mortgage loan, can i quit claim 3…

  1. Re: quit claim
    Sure, but quit claiming your interest will not relieve your legal obligation to pay the loan. A quit claim transfers any interest you have in title. It does not affect the loan.

    NOTICE: No attorney-client or confidential relationship is created through this communication. The information provided is of a general nature only and does not constitute legal advice or a legal opinion and requires that the poster obtain legal advice from an attorney to protect his or her rights.

    Richard Pinette
    Law Office of Richard Pinette, APLC
    18101 Von Karman, Suite 330
    Irvine, CA 92656

  2. Re: quit claim
    Sure, but that doesn’t take you off the loan obligations.

    Terry A. Nelson
    Nelson & Lawless
    18685 Main St., #175
    Huntington Beach, CA 92648

  3. Re: quit claim
    It sounds to me that you are mixing up the rights and obligations of real estate owners with the rights and duties of co-signers.

    If you are ONLY a co-signer, you have no interest in the real estate. All you have is an obligation as a guarantor of the loan secured by the real estate.

    Of course, you can quitclaim anything any time, but if you are not an owner or co-owner, the quitclaim is meaningless and has no effect whatsoever, except possibly to underscore your lack of ownership.

    Further, quitclaiming has no effect whatsoever on your obligations and duties as a co-signer (a/k/a surety or guarantor) on the loan. Absent unusual circumstances (such as fraud), the only ways to get out of your obligation as a guarantor are for the loan to be paid in full, or to obtain your release from the lender, which it probably won’t give.

    Bryan Whipple
    Bryan R. R. Whipple, Attorney at Law
    P O Box 318
    Tomales, CA 94971-0318

  4. Re: quit claim
    The question is not can you, the question is why on earth would you? First, I can say without any hesitation that co-signing a loan is a terrible idea. You will be on the hook for that loan, and the inevitable foreclosure regardless of whether you are on title. There is a reason your co-signer (the buyer) can’t qualify for the loan, and it essentially makes clear that fact that they will probably default at some point on the loan – underwriting criteria for lending is not arbitrary and without basis – people who don’t qualify have been shown to have high default rates. This is exactly why we are in the mortgage meltdown we’re in – because people got loans they couldn’t afford and should never have received. I strongly encourage you to seek legal advice (not on these boards – go pay an attorney to review the matter in detail and tell you all the horror stories about co-signing a loan) before you sign any documents. I can’t stress what a bad idea this is, particularly in this market of deflating property values.

    *Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC’s (the “Firm”) participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

    David Gibbs
    The Gibbs Law Firm, APC
    110 E Avenida Palizada, Ste 201
    San Clemente, CA 92672-3956

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