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Why would Bank of America now require a quit claim Deed to allow a loan modification when the party already did a Deed of Gift?

Sterling, VA |

Co-buyer/co-borrower unmarried son executed a Deed of Gift releasing all rights title and interest over a year ago to his co-buying/co-borrowing unmarried Mother. Mother is unable to modify the loan because Bank of America won't accept the Gift Deed. They require a Quit Claim Deed. In Virginia the Gift Deed conveys all the son's interest to the mother but this type of Deed does not trigger recording taxes. A Quit Claim Deed is more expensive to record and does trigger recording taxes. What is behind Bank of America's fixation on Quit Claim Deeds?

Attorney Answers 1


  1. Bank of America has offices all over the United States of America, and one of them is located in the far Western states. The folks who are in those offices are familiar with the legal-title-transition document known as a 'Quit Claim" deed because that is THE medium through which ANY and all legal rights are extinguished in western states. Virginia, taking its legal traditions from Great Britain, continues to use the 18th century document known as a Deed of Gift- which is just as valid. However, BoA doesn't want to have to train its people in the niceties of every state, and virtually ALL states (except Louisiana) accept the Quit Claim deed. It doesn't change your legal title, but if you want to force this issue, you're going to have to deal with someone with a law degree in BoA's hierarchy. Go ahead to www.courts.state.va.us and go to deed calculation under the Circuit Court page of the county in which you reside to figure out just how much more this document is going to cost you in recording fees, and then provide that information to BoA. They might listen. More likely, they won't care and will just tell you that this MUST be done their way.
    Good luck.

    Legal issues often depend on the specific facts in any given case or situation. Please do NOT utilize the information you receive as either a binding legal opinion in your case, nor presume that I am your counsel because I've answered a question you had. Any legal representation is accomplished by written contract ONLY, signed by each of us.

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