Never Deed (Quit Claim) Your Property To Avoid Foreclosure EVER

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Can I Keep My Curtains? Facing Foreclosure in Uncertain Times by Ken CookListen folks, there are sharks in the water. Investors are coming out of the woodwork looking for people who are facing foreclosure so they can take advantage of them. There are many, many reasons you should never quit claim your property to ANYONE else EVER. Here are just a few.

1. The reason you are facing foreclosure is probably because you haven't called your lender to ask for help. Not the servicer - that's a collection agency. Call the LENDER. Can't find the lender? Call a TITLE AGENT in your area and ask them to find the lender for you. Trust me, with all the negative press about how crappy lenders are the ones who are remaining are going to do anything reasonable to help.

2.  Investors want EQUITY. Investors who aren't buying equity or futures are really bad investors. Chances are you have little or no equity in your property. The only way an investor can get your property with any equity in it is to purchase it on a SHORT SALE. You can initiate the short sale even though the investor will want to control the deal - DON'T LET THEM! It's YOUR house, YOUR credit and YOUR future. Get yourself a LISTING AGENT who has experience in short sales - do NOT get into further trouble.

3. Once you sign a quit claim deed it doesn't matter what the investor told you or promised you the house is now theirs. If they tell you to get the hell out you have no choice but to leave.  They can throw you out and put a renter in there at any time. Just because they were nice doesn't mean anything now.

4. An investor NEVER has your best interests at heart - investors have one goal: profit. If you are not profitable you're just in the way. Investors who aren't profiting aren't investors - they are fools.

5. Read your mortgage agreement. There is a paragraph in there called the DUE ON TRANSFER, DUE ON SALE, or ACCELERATION CLAUSE. One of the many things it says is that if you transfer the property to another person or entity (including investment trusts, LLC's, LLP's, and anything other than YOUR NAME) you are violating the DOS clause and now the lender doesn't even have to wait for due process that accompanies a foreclosure.

Theft By Quit Claim * Michigan Taking On Equity Strippers * US Bank v. Angela Price * Don't Be A Fool (AR Post)

It took less than five minutes to find those posts using Google. There are thousands more. So let me say it one more time NEVER SIGN A DEED, CONTRACT, PROMISSORY, or ANY DOCUMENT when the ownership of your home is in question.

There are some very kind looking, friendly acting, smiling investors out there who would LOVE to have you sign your home over to them. They will promise to bring your loan current and get the heat off your back (and they will) but you tell them this, "No, Ken Cook says that's the dumbest thing I can ever do. Here's what I will do: I will sell you the house and the closing attorney can get you to sign the QCD at the closing table. There is no other way you're getting this property." Now they will act like you're just over-reacting or assure you they aren't one of those kinds of investors. Pick up your phone, dial 678-946-0101 and get me on the phone. Then hand the phone to the investor.


Foreclosure resources for consumers from recommended agencies

Foreclosure Rescue ScamsWE BUY HOUSES! * Home Owners Warned * Grand Theft Home

Okay, so you need help. I understand and hopefully you can find help from these HUD Tips For Avoiding Foreclosure

You should also download my newest book "Can I Keep My Curtains? Facing Foreclosure in Uncertain Times"

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I started writing on Active Rain in 2006 when I was representing the mortgage industry. I am no longer in that industry and many of the older posts contain outdated information. Please do not contact me for LENDING or MORTGAGE questions but rather contact a licensed mortgage professional from your area. I have always been in marketing and branding and that is still what I do. Thanks for reading!


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Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!
All great point Ken...those sharks have teeth and the end result is devastating to the homeowner who is trying to get out of a bad situation...they just made it worse.  Nice post.
Jan 19, 2008 10:00 AM #1
Lenn Harley
Lenn Harley,, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland


Unfortunately, when a home buyer is in distress, they tend to gravitate to folks who promise them the best relief. 

Hopefully, these posts will get some Google juice and the consumers will pick them up. 

Jan 19, 2008 10:39 AM #2
Diane McDermott
Realtor®, GRI, Landis e2 Real Estate, LLC - Charlotte, NC
Charlotte NC Real Estate Market
Excellent advice as always Ken! Homeowners in distress sometimes don't consider the ramifications....
Jan 19, 2008 10:59 AM #3
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ


Another great post! There is one further reason...You nullify the owner's title policy by a third party transfer...! Should a title problem surface you will not have coverage, but then again as you said, you are no longer the owner anyway! Thanks,   Fran

Jan 19, 2008 12:07 PM #4
Jeffrey Dolfinger
24/7 Realty Inc. - Poughkeepsie, NY
NRBA Member
Investors doing that in NY are now facing stiff fines and even jail time thanks to the Home Equity Theft Prevention Act
Jan 19, 2008 12:11 PM #5
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland
I have seen bad things happen to people that Quit Claim their property over.  Someone actually called me this past week before doing that just in time.  I told this person to have the investor contact me directly at the law firm office I work at.  Haven't heard from them yet.
Jan 19, 2008 01:03 PM #6
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy
It is very important to remind people that just because they are hearing the words they want to hear doesn't mean that the events they want to happen will... read the contract.  Another great post, Ken.
Jan 19, 2008 03:17 PM #7
Jeanean Gendron
The Address Realty - Redding, CA
Specializing in Selling Unique Properties
Ken: You always do a good job....great perspective and great information. Compelling post.
Jan 20, 2008 01:01 AM #8
Joan Mirantz
Homequest Real Estate - Concord, NH
Realtor, GRI, CBR, SRES - Concord New Hampshire
They all just want help so badly...the first friendly face is enough to suck them in!
Jan 20, 2008 09:56 AM #9
Lisa Bosques
Burien, WA
Lots of scary stuff out there. I'm glad to have your blog as a resource!
Jan 20, 2008 03:40 PM #10
Ken Cook
Content, coding, marketing, host. - Marietta, GA
Content Marketer/Creator
Everyone - thank you for your comments! I don't intend by any means to throw all investors under the scam bus because I am an investor and I depend on my investor clients to earn a living. The truth, however, is that most of these "foreclosure rescue" deals are scams. The test to find out is easy and is what I shared above plus a little - but not much - more.
Jan 21, 2008 12:53 AM #11
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

A Quit Claim Deed transfers only any present title, right or interest that the Grantor may have. There are no warranties regarding liens or encumbrances and no representation of either past or future ownership. 

Nov 10, 2017 10:05 PM #13
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

I would also suggest never agree to quit claim your property to an investor or go into foreclosure. Explore all your solution, speak to different professionals. Short sale can be a solution, but sometimes you can negotiate new terms with your lien holder. 

Nov 10, 2017 10:07 PM #14
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