Can A Quit Claim Save You From Foreclosure?

The term “quitclaim” refers to formally giving up, abandoning, or surrendering one’s legal right to a piece of property.

In the past, transferring real estate involved a ceremonial act. This act required the person transferring the land to hand over a twig or clod of turf from the ground to the recipient of the land.

Currently, ownership of real property is transferred through a written and signed legal document called a property deed.

The deed transfers property ownership from the previous owner, known as the grantor, to the new owner, known as the grantee.

About Quitclaim Deeds



A quitclaim deed is a legal document that transfers the ownership of a property from one person to another. However, it provides limited buyer protection.

In other words, a quitclaim deed is a convenient way to modify or transfer real estate property ownership.

The transfer of ownership happens without any changes or additions to the title.

If you and your two siblings inherit your parents’ property and you transfer your property ownership to someone else through quitclaim, the recipient will receive only the share you had, which is 33%.

You cannot transfer your siblings’ property ownership to a third party without their consent, as they also own the property.

Grantor And Grantee

The person giving away the property is the grantor. This person gives the existing property deed to the person receiving the property, a grantee.

Each transfer requires two parties who trust each other. Each state provides specific real property transfer rules that must be adhered to for the transferring deed to be fixed.

Yet Beware…

Quitclaim deeds offer a different level of assurance and commitment than other types of deeds for real estate.

Quit claims should be reserved for limited situations, and you should consult with an attorney or title specialist before simply transferring or purchasing someone’s real property interests.

An example would be a parent transferring ownership to their child.

Only accept a quitclaim deed from grantors whom you know and trust, and even then, it’s crucial to conduct your due diligence to ensure that you are getting the benefit of your bargain.

Deeds For Transferring Property Ownership



Transferring property ownership requires a specific type of deed.  Each state generally has different names for deeds with the same legal components. If you’re not careful, it may result in a cloud or title defect, making it easier to sell the property.

Grant Deeds

A grant deed is a legal document that transfers property ownership to a new owner. It contains a clause known as the granting clause.

The grant deed provides two essential assurances to the buyer. Firstly, it assures that the seller has yet to sell the property to someone else.

Furthermore, the seller ensures the buyer that no undisclosed title issues, such as liens or restrictions, are referred to as “implied warranties,” and are not usually explicitly written in the deed.

Although not mandatory, most grant deeds are generally recorded in the county’s public records where the property is situated.

Warranty Deeds

A warranty deed is a standard method to transfer ownership that provides more protection to buyers and sellers. A special warranty deed is frequently used in sale and purchase transactions.

A warranty deed transfer is a lengthier and more formal process than a quitclaim transfer.

A general warranty deed involves payment and includes legal provisions safeguarding the purchaser from potential title problems or liens.

A warranty deed assures that the property is not owned by anyone else. It is similar to a grant deed in many other respects.

A warranty deed ensures no hidden liens or encumbrances on the property being sold. It also guarantees that the seller (grantor) will defend the title against any claims and protect the buyer from them.

What Is the Difference Between a Quitclaim Deed and a Warranty Deed?

A warranty deed assures the buyer that the seller has undisputed ownership of the property, which legally is known as fee simple ownership.

In contrast, a quitclaim deed transfers any right that the seller may have to the buyer without making any promises.

Quitclaim Deeds

Quitclaim deeds are frequently used when transferring real estate to a family member or after a property tax sale auction. This is done to avoid expenses associated with title insurance or hiring an attorney.

They are often used when transferring property to and from a trust, such as when refinancing a bank loan.

Other Uses For Quit Claim Deeds

A quitclaim deed can be helpful in various situations.

A quitclaim deed in marriage enables you to conveniently add the other spouse to the title of your property.

On the contrary, a quitclaim can be used during a divorce settlement to transfer the title to you or your ex-spouse.

A quitclaim can fix errors in your property’s title or title defects if it needs to be updated.

A quitclaim is also used in a will when someone has transferred a property title to a friend or relative and subsequently passes away.

If you have given someone a gift of your property and are looking for a simple and affordable way to transfer the title, a quitclaim is an excellent option.

Finally, you can sign a quitclaim to transfer ownership of your home to the bank and cancel the mortgage.

Quit Claims And Foreclosure

Executing a quit claim deed only transfers interest in the property and does NOT release the person from mortgage obligations.

A quit claim deed will not solve foreclosure issues or stop any pending foreclosure sale.

A quit claim deed allows you to transfer your ownership interest in your home. However, it does not relieve you of the mortgage obligation.

If you’re unable to make payments, the lender will take back the home through a foreclosure process.

Transferring the property to someone else won’t prevent foreclosure, but you can sign the house back to the bank through a deed in lieu of foreclosure.


In the State of Michigan, you can also sell what’s known as your “redemption interest” after a foreclosure sale. However, once your redemption interest expires, so will any interest you had in the property. 

What Does A Foreclosure Process Entail?

If you stop making mortgage payments for a while, the bank will tell you and others that your house is up for foreclosure. Depending on state requirements, the bank might also advertise in the newspaper or file something with a court.  The state of Michigan allows foreclosure sales through sale by advertisement.

If you don’t pay back your loan, the bank will sell your house at an auction called a sheriff’s sale. The money from the sale will go to the lender who lent you the money. Usually, it is your bank that buys the house.

After the sheriff’s sale, you can still stay in your house for a while, depending on the state-specific redemption rights afforded. It gives you time to pay off the entire loan and get it back or sell the interest you have during that time.

Deed In Lieu Of Foreclosure

To speed up the foreclosure process, opting for a deed in lieu of foreclosure may be beneficial. The bank and their attorney will then prepare the deed in lieu.  

By opting for a deed in lieu of foreclosure, the borrower can stop a foreclosure from being listed on their credit report.

What are HOA dues?

A Homeowners Association (HOA) fee is a monthly amount paid by specific residential property owners to their homeowners’ associations (HOAs). Collecting these fees is to aid the association in property maintenance and improvement.


A quit claim deed is a way to transfer property. But it’s important to know that this type of deed doesn’t offer guarantees. Instead, it means that the homeowner could transfer any liens attached to the property, such as HOA, judgment, and mortgage liens.

While a quitclaim deed cannot solely prevent foreclosure, it may offer some assistance in specific situations where foreclosure is pending.

Before signing any documents, discussing the potential impact on your credit is essential if you complete a deed instead of foreclosure. The best thing is to consult a foreclosure attorney, such as an attorney with the Babi Legal Group.

Disadvantages of Signing a Quitclaim Deed

If someone uses a quitclaim deed and transfers ownership to avoid foreclosure, they should be aware that it will only stop the foreclosure sale.

  • The quitclaim provides no assurance, implying that the purchaser might encounter complications such as liens or discover that the seller had no legal ownership of the said property.
  • Although a quitclaim deed is a way to transfer property ownership, it doesn’t ensure that the seller or buyer has a valid claim to the property. While buying a house using a quitclaim deed is technically possible, most buyers prefer the safety and assurance of obtaining a warranty deed.
  • If you’re using a quitclaim deed, it’s vital to get a title search done by a title insurance company, which can cost anywhere from $150 to $400 (or more, depending on the property). 
  • The quitclaim deed only impacts ownership and the name on the deed, not the name on the mortgage. 

Mortgaging Options After Property Transfer



To transfer your existing home loan, which includes its current interest rate and terms, to another person, is called a mortgage transfer. By doing this, the other person can assume responsibility for the home and the lender’s lien on it without having to apply for a new mortgage. However, the mortgage company would have to provide final approval for this to take effect.

Transferring a mortgage to someone else may be required in certain situations, such as a divorce or the demise of a loved one. But it may be challenging to qualify for a transfer without particular circumstances.

The lender will assess the financial status of the grantee to determine if they are eligible for either taking over the original loan or refinancing the house. If approved, the grantee will assume full responsibility for the mortgage, releasing the grantor from any obligations or liabilities related to the property and loan payments.

When taking over a loan, such as an assumable loan, the new borrower must still meet the lender’s requirements, which may include a credit and income check.

Eligibility criteria can vary by lender and are designed to ensure that the new borrower is financially responsible and able to repay the loan.

Using a quitclaim deed can be an effective way to transfer property ownership, but it is essential to understand the potential risks and consequences before doing so. Be sure to consult a foreclosure attorney or title insurance company specializing in Michigan law for guidance on how this type of transaction may impact your property title and financial obligations.



Does a quitclaim deed remove me from the mortgage?

A quitclaim deed does not affect a mortgage. It only transfers the title of the property and does not transfer any mortgage the grantor has. It could cause the mortgage company to declare the mortgage in default for the transfer if the mortgage company did not approve it.

Does a spouse have the right to property after signing a quit claim deed?

A quitclaim deed legally transfers ownership from joint or community property to separate property. By signing the deed, the transferring spouse gives up their married couple’s rights to the property.