Quit claim deeds that trigger a “due on sale clause” have not been a problem lately because mortgage rates have been going down. However as interest rates begin to go up, it could be profitable for mortgage companies to begin to “call the loan.”
Orem, UT (PRWEB) August 08, 2013
Asset protection is designed to help people save their assets from lawsuits and creditors. This is an important part of personal legal planning. Many people try to get asset protection by deeding their property into a legal entity. Novices do not know whether to use a quick claim deed or quit claim deed. In this article, attorney Lee Phillips explains that it is a “quit claim deed” and not a “quick claim deed.” He then defines the term and explains how a quit claim deed can get folks in trouble with the mortgage company. The quit claim deed, if it is not done correctly, can trigger a problem with the “due on sale clause” of the mortgage.
There are many different legal entities used by folks to get asset protection. However, when property is quit claim deeded into some of these entities, it triggers a due on sale clause with the mortgage company. In his article attorney Phillips reviews the different entities and explains the asset protection value of the entity and which entities do not trigger the due on sale clause. If these facts are not understood in the end, these strategies won’t give people the asset protection they think they are getting. This article was written to help people understand important aspects of asset protection and gain an understanding of how some of the asset protection strategies can fail. This will help people get a better handle on their asset protection choices.
Mr. Phillips says, “Quit claim deeds that trigger a “due on sale clause” have not been a problem lately because mortgage rates have been going down. The mortgage company has nothing to gain. However as interest rates begin to go up, it could be profitable for mortgage companies to begin to “call the loan.” They will be able to make more interest by re-loaning their money at higher interest rates.”
Mr. Phillips is an attorney who serves as a counselor to the Supreme Court of the United States. He enjoys helping other people apply the law, not only to provide asset protection and estate planning, but to use it to structure businesses and save taxes. He is the author of 11 books, including his latest,Protecting Your Financial Future. He has written hundreds of articles for professional people assisting them in finding various strategies to use the law to protect their property, save taxes and make additional money.
LegaLees is a legal self-help publishing company that was founded in 1982. It produces products designed to help people understand the law and better structure their personal and business affairs. Their mission is to help people protect assets and prevent legal disasters that can strike at any time.