Quitclaim Deed

[daisie]

I own a condo in Maryland that I rent out. The last tenant skipped out on/around 3/10/00 and it has since been vacant. I hired a property manager this time to re-rent and do the management duties. To date It is still not rented and I can not afford to keep paying the mortgage and condo fee.

Can someone please explain what an quitclaim deed is, and if I can do one?

How does this affect my credit?

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by daisie:
I own a condo in Maryland that I rent out. The last tenant skipped out on/around 3/10/00 and it has since been vacant. I hired a property manager this time to re-rent and do the management duties. To date It is still not rented and I can not afford to keep paying the mortgage and condo fee.

Can someone please explain what an quitclaim deed is, and if I can do one?

How does this affect my credit?<HR></BLOCKQUOTE>

My response:

A quitclaim deed transfers or "releases" to the transferee whatever present right or interest the grantor has in the described property. Unlike a grant deed, a quitclaim deed carries with it no express or implied covenants. Thus, if the grantor holds no interest in the property, a quitclaim deed conveys nothing. Insofar as credit reports are concerned, it does nothing, with the possible exception that property was transfered. No adverse effect. You can "do one" but you haven't said just what it is you are trying to do. Are you trying to get "out from under" the mortgage? Do you want to convey the deed back to the lienholder in lieu of foreclosure? What is happening to you that makes you want to unload the property? How about selling?

IAAL


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[daisie]

I've contacted numerous real estate agents regarding selling the condo - they all told me I could not sell it for what I owe. In fact I would be upside down by about $8000 in order to sell. I don't have that amount of cash. So I've put aside the selling aspect.

The previous tenants who skipped out caused around $2500 worth of damage and the remainder of their 2 year lease (ends 1/2001). I have paid the mortgage up until now but can not afford it any longer. I'm also 3 months behind on the condo assoc fees. I have filed suit against the former tenants, waiting on a court date, but that only included March and April rent so far. Now I have to file another suit for May, possibly June.

Just today, the property manager I have suggested lowering the rent by $35 to see how that will help as far as renting it out.

My two options I have considered are: deed in lieu of foreclosure back to the mortgage company and just let it be foreclosed upon. I contacted the mortgage company and they will not accept a deed in lieu of foreclosure since I do not occupy the property. I have worked long and hard to keep my credit good and I hate to see it ruined now but I feel I don't have any choice.