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  1. #1
    Join Date
    May 2012
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    4

    Default Can a Quit Claim Deed Transfer Liability

    My question involves real estate located in the State of California:

    Here are the facts:

    Daughter and Mom refinanced home. Both are on the Note and Mortgage. Both have a trust and the deed is Tenants in Common with a interest division of 65% daughter's trust & 35% Mom's trust. Home is underwater by about $25k currently. Mom is undergoing med treatment for Stage IV cancer. Currently all costs are covered by insurance. Mom is worried about possible future liability and its effect on her daughter.

    Question: If Mom was to quit claim interest to daughter and later bills arised that could not be paid, what could be the ramifications on the home?

    Thanks so much for any replies

    BS

  2. #2
    Join Date
    Sep 2010
    Posts
    8,690

    Default Re: Can a Quit Claim Deed Transfer Liability

    Quit claims transfer ownership, nothing else.
    Since there's no equity in the property, there's nothing that medicaid or any creditor getting a judgment is going to get further.
    If mom is receiving any benefits through medicaid, doing such a transfer can jeopardize those benefits.

  3. #3
    Join Date
    May 2012
    Posts
    4

    Default Re: Can a Quit Claim Deed Transfer Liability

    Thanks for the reply and one followup ?

    Even though there is no equity in the home, let's say a creditor put a lien on the property and several years later (say ten), sister wants to sell. Mom has passed. What would happen in these circumstances?

    If this is not the right forum for this followup I apologize and please give me a hint where to post this.

    Thanks

    BS

  4. #4
    Join Date
    Sep 2010
    Posts
    8,690

    Default Re: Can a Quit Claim Deed Transfer Liability

    A lien would prevent a sale until the lien is paid off. No sane buyer will accept a title transfer so clouded.

  5. #5
    Join Date
    May 2012
    Posts
    4

    Default Re: Can a Quit Claim Deed Transfer Liability

    Thanks for your assistance.

    BS

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