Quit Claim Deeds Don't Work (& Neither Do Land Trusts)

This can best sum up this entire article, “if you don’t pay your mortgage, you will lose your home.”  That’s pretty much it.  Sorry. 

If you are in need of help, please read on.  This should at least be a good start on what NOT to do and might even help prevent you from slipping even further into debt.

Understand that there are several scams out there looking to take the very last dollar in your wallet, while promising to save your home from foreclosure.  Sound too good to be true?  Guess what I am about to say… anybody?  It is too good to be true!

There is no magical document that will hide your identity (Land Trust) or remove you from liability to the lender (Quit Claim Deed).  Mortgages are perfectly legal so don’t bother paying for that scam either.  You know the one, it claims that mortgages are illegal under usury laws and therefore you don’t owe the lender—you do.  That last one is so insane that I am not even going to cover it.

Land Trusts.  They have their place in real estate.  Consult an accountant as to when and why you would use one.  What you will not do (repeat three times aloud), is create a land trust, appoint an executor, and then stop paying the mortgage.  Yes, there is anonymity behind a land trust.  The lender cannot see the current resident of the property.  This is irrelevant, if the note is not getting paid.

Quit Claim Deeds.  This is a favorite scam by those who know better and those who are misinformed.  The only thing a Quit Claim Deed (QCD) does is to remove the interest that the identified party has in the specified property.  You can file a QCD on your neighbor’s house if you like.  It will simply quit all of your interest in his/her property.  Since you didn’t have any to begin with, it doesn’t really matter.  Similarly, in a divorce situation, one party frequently quits their half interest in the property to the other party as specified in the divorce decree.  What it DOESN’T do, is remove your liability for the mortgage.  That you still owe… 

Please don’t try and fight the system by pretending you don’t have an obligation to repay the lender.  Odds are, they have been granting mortgages longer than you have been using your home for collateral.  Your best bet is to contact the lender and explain why you are delinquent on your mortgage.  If that person is not helpful, then ask to speak to his/her supervisor (level up).  Keep going until you find the help that you need.  Sticking your head in the sand and pretending the problem doesn’t exist will not be the solution.  It will only make things worse in the end.  However, communicating your issues might be the reprieve you needed to get your feet back on the ground.  Life happens and the lender wants to keep you as a client in good standing.  Believe me, in today’s market, they do not want your property.  Give them every reason not to take it away!

• Rate this Post!

  Select Your Rating:

  • 5 Stars (Excellent!)
  • 4 Stars
  • 3 Stars
  • 2 Stars
  • 1 Stars (Poor)

• Share this Post

  Share With A Friend:

  Your Name Your Email

  Friend's Name Friend's Email

  Optional Message

  Send

• Print
• Social Bookmarking

  Add to Bookmarks: