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How do I do a Quick Claim for Collateral

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LaLaD

New member
'I want to do a Quick Deed for six (6) months to sell a house that I have. I want to put my current property up as collateral in the form of a quick claim in my aunt's name. Is this possible? Also, what will I need to do?
 

PayrollHRGuy

Senior Member
@LaLaD

There is no such thing as a "Quick Deed". I would normally think you mean a quitclaim deed but since you added the word claim the second time you wrote it I have to wonder.

I've never heard of a deed that would only be effective for 6 months. And I'm not 100% sure what you are trying to do. How about you explain it without trying to use legal terminology?
 

LaLaD

New member
I have heard both being used. However, let's use Quick Claim.

I am telling you the agreement that we would like to make concerning a loan. Upon paying the loan back, the property would be deeded back to me.

I am not a legal person which would be the reason I am asking for advice.
 

Just Blue

Senior Member
I have heard both being used. However, let's use Quick Claim.

I am telling you the agreement that we would like to make concerning a loan. Upon paying the loan back, the property would be deeded back to me.

I am not a legal person which would be the reason I am asking for advice.
Just for informational purposes there is no such thing in Texas as a "quick deed". Whomever you heard use that term did so out of ignorance. :)
 

Zigner

Senior Member, Non-Attorney
I have heard both being used. However, let's use Quick Claim.

I am telling you the agreement that we would like to make concerning a loan. Upon paying the loan back, the property would be deeded back to me.

I am not a legal person which would be the reason I am asking for advice.
You should seek actual legal advice from a local attorney.
 

PayrollHRGuy

Senior Member
I understand. First, it is called a quitclaim deed.

Deeds transfer property. I've never seen one that brought it back. A better move would be a contract for the loan that allowed the creation of a lien on the property that would allow them to take possession of the property should you not repay the loan. You will want a lawyer to write that up and advise in the situation in general.
 

LaLaD

New member
I understand. First, it is called a quitclaim deed.

Deeds transfer property. I've never seen one that brought it back. A better move would be a contract for the loan that allowed the creation of a lien on the property that would allow them to take possession of the property should you not repay the loan. You will want a lawyer to write that up and advise in the situation in general.
Awesome. Thank you so much.
 

zddoodah

Active Member
There's no such thing as a "Quick Claim" (unless you're an insurance claim handler and deal with a particular claim in a short amount of time) or a "Quick Deed." I assume you're talking about a quitclaim deed.

That said, I have no idea what it might mean to "do a [quitclaim deed] for Collateral." Normally, if you are pledging real property as collateral (e.g., for a loan), you execute a deed of trust or mortgage (I believe Texas is a deed of trust state). The mechanics of how that gets done depends greatly on the details of the transaction, but it should not be done without competent legal representation.

I want to do a Quick Deed for six (6) months to sell a house that I have. I want to put my current property up as collateral in the form of a quick claim in my aunt's name. Is this possible? Also, what will I need to do?
None of this makes a lick of sense. If you execute a quitclaim deed, you are giving away your interest in the property. You're going to need to explain what you're trying to do a LOT better or simply seek out a local attorney for assistance.

I am telling you the agreement that we would like to make concerning a loan. Upon paying the loan back, the property would be deeded back to me.
Are you saying that your aunt is going to loan you money that you intend to repay in six months? And that you want to transfer title to your home to her with her transferring title back after you repay the loan? Why wouldn't you simply give her a deed of trust? Transferring title like that would be a horrible idea and could carry some rather nasty tax consequences. You really need to consult with a local attorney.
 

LdiJ

Senior Member
I have heard both being used. However, let's use Quick Claim.
Quick Claim is definitely wrong.

I am telling you the agreement that we would like to make concerning a loan. Upon paying the loan back, the property would be deeded back to me.

I am not a legal person which would be the reason I am asking for advice.
Quit Claim Deeding the house to someone when you want it to be collateral for a loan is not the proper method to do it. The proper method would be for you to continue to own the home but give the creditor a lien against it. In order to do that properly you need an attorney involved.
 

Zigner

Senior Member, Non-Attorney
There's no such thing as a "Quick Claim" (unless you're an insurance claim handler and deal with a particular claim in a short amount of time) or a "Quick Deed." I assume you're talking about a quitclaim deed.

That said, I have no idea what it might mean to "do a [quitclaim deed] for Collateral." Normally, if you are pledging real property as collateral (e.g., for a loan), you execute a deed of trust or mortgage (I believe Texas is a deed of trust state). The mechanics of how that gets done depends greatly on the details of the transaction, but it should not be done without competent legal representation.



None of this makes a lick of sense. If you execute a quitclaim deed, you are giving away your interest in the property. You're going to need to explain what you're trying to do a LOT better or simply seek out a local attorney for assistance.



Are you saying that your aunt is going to loan you money that you intend to repay in six months? And that you want to transfer title to your home to her with her transferring title back after you repay the loan? Why wouldn't you simply give her a deed of trust? Transferring title like that would be a horrible idea and could carry some rather nasty tax consequences. You really need to consult with a local attorney.
This was all cleared up (and acknowledged by the OP) over 2 hours before you posted. It would help to read the thread in its entirety before responding.
 

Zigner

Senior Member, Non-Attorney
Quick Claim is definitely wrong.



Quit Claim Deeding the house to someone when you want it to be collateral for a loan is not the proper method to do it. The proper method would be for you to continue to own the home but give the creditor a lien against it. In order to do that properly you need an attorney involved.
Ditto what I told zddoodah
 

Taxing Matters

Overtaxed Member
Are you saying that your aunt is going to loan you money that you intend to repay in six months? And that you want to transfer title to your home to her with her transferring title back after you repay the loan? Why wouldn't you simply give her a deed of trust? Transferring title like that would be a horrible idea and could carry some rather nasty tax consequences. You really need to consult with a local attorney.
While I agree that deeding the home to the creditor is a poor way to use the home as a collateral for a loan it would not necessarily cause any tax troubles, especially if there is documentation to support that it is a loan. There are loan transactions that have been done this way that the IRS treated as just that — a loan.

For LaLad, the reason that this is a very poor way to do it is that your Aunt would become the title owner of the property and she could sell it, mortgage it, give it away, keep it after you pay the loan, or whatever, and you'd be stuck suing her to either get the house back or for the value of the home. That can be costly, take perhaps years to resolve, and the final outcome may not get you your house back or even enough money to buy a comparable home. It's a lot better to simply give your aunt a mortgage or deed of trust (which is pretty much the same thing as a mortgage in purpose). That allows you to keep title to the property and prevents her from doing anything with the property that would take it away from unless you fail to pay the loan and she has to foreclose to collect.
 

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