Home Buying in 98166>Question Details

pup_loverz, Home Buyer in Vallejo, CA

How can somebody I know do "Buy & Bail" last month?

Asked by pup_loverz, Vallejo, CA Sun Mar 10, 2013

He did Quitclaim Deed as soon as the new home was bought to his wife's name & his mother's name. Is it illegal?

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Answers

4
Kary L. Krismer’s answer
As Dan mentions, just quit claiming the property does not eliminate the mortgage debt. I would also note that if the grantor on the deed was also a grantee (e.g. John Smith grants to John Smith and Jane Smith, husband and wife), then all they are doing is changing title to how they want it. In your case it's possible the wife had bad credit and the mother did not want to be on the loan, but there could be other explanations.

I would also note that there may be legal implications to doing this sort of thing, but I wouldn't necessarily describe it as being "illegal." For those the parties would need to consult an attorney.
1 vote Thank Flag Link Sun Mar 10, 2013
This is a common way to take title on a conventional loan that is often used by husband/wife or other family member when credit is an issue. In case something happens to the spouse or person who qualified for the loan, the other spouse/family member is in a stronger position to keep the house as long as they continue making payments, no matter what. I am curious why you refer to this as a "buy and bail?"
0 votes Thank Flag Link Mon Mar 11, 2013
Maybe we'd need more details but you can deed your home to anyone you want. However, the mortgage debt remains in the original buyers name.
0 votes Thank Flag Link Sun Mar 10, 2013
Pup,
Changing ownership does not change the mortgage obligation. He may add them to the title, which is not uncommon, and this does nothing to their mortgage obligation, so I don't know what your question is.
0 votes Thank Flag Link Sun Mar 10, 2013
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