One of the most persistent myths in Florida foreclosure is that you can escape a mortgage by signing a quitclaim deed and transferring your property to someone else. This is false -- and acting on this belief can make your situation significantly worse. A quitclaim deed is a title transfer instrument. It does not touch the mortgage debt.
This guide explains exactly what a quitclaim deed does and does not do in the context of a Florida foreclosure, why it is a common tool in foreclosure rescue scams, and what your legitimate options actually are.
What Is a Quitclaim Deed?
A quitclaim deed is a deed that transfers whatever interest the grantor (the person signing) has in a property to the grantee (the person receiving). Unlike a warranty deed, it contains no covenants -- no promise that the title is clear or that the grantor actually owns anything. It simply passes along whatever the grantor has, nothing more.
Quitclaim deeds are commonly used in estate planning (transferring property into a living trust), divorce settlements (one spouse deeding their interest to the other), and adding or removing a co-owner from title. They are not designed to resolve debt and are not a legitimate foreclosure solution.
The Critical Distinction: Title vs. Debt
A Florida mortgage transaction involves two separate legal documents:
| Document | What It Creates | Transferred by Quitclaim Deed? |
|---|---|---|
| Promissory Note | Personal liability for repaying the loan | No -- stays with the original borrower |
| Mortgage | A lien on the property securing the note | No -- lien runs with the property regardless of who owns it |
| Deed (title) | Ownership of the real property | Yes -- quitclaim deed transfers title only |
When you sign a quitclaim deed, you transfer title but not the mortgage. The lien remains attached to the property. The foreclosure continues. Your personal liability on the promissory note continues. The new "owner" receives the property subject to the mortgage, which the lender can still foreclose on.
Quitclaim Deed Foreclosure Scams in Florida
Florida has one of the highest rates of foreclosure rescue scams in the country, and the quitclaim deed is a central tool in many of them. Here is how the typical scam works:
- A company contacts a homeowner in foreclosure and promises to "save their home."
- The company asks the homeowner to sign a quitclaim deed to "temporarily" transfer the title so they can work with the lender.
- The homeowner is told to continue paying "rent" to the company to stay in the home.
- The company collects rent, makes no mortgage payments, and does nothing to stop the foreclosure.
- The foreclosure completes. The homeowner has lost title, paid rent they will never recover, and still faces a potential deficiency judgment.
This constitutes equity skimming under Florida law (F.S. 697.08) and is a felony. If someone is asking you to sign a quitclaim deed as part of saving your home, stop immediately and consult a licensed Florida foreclosure attorney or contact the Florida Attorney General's office.
Legitimate Use: Deed in Lieu of Foreclosure
A quitclaim deed can be part of a legitimate deed in lieu of foreclosure -- but only when the lender agrees in writing to accept the deed and release the debt. In a proper deed in lieu:
- The lender and homeowner sign a formal agreement specifying that the lender accepts the deed in full satisfaction of the mortgage debt
- The lender provides a written release of the promissory note (deficiency waiver)
- The homeowner receives a negotiated timeline to vacate
- The transaction is documented for tax purposes (1099-C or 1099-A reporting)
Without the lender's formal written agreement, a quitclaim deed to the lender accomplishes nothing legally -- the mortgage remains unpaid and enforceable.
What You Should Do Instead
If you are facing Florida foreclosure, your legitimate options include:
- Loan modification -- restructure the debt and keep your home
- Short sale -- sell with lender approval and get a written deficiency waiver
- Sell before the auction -- keep any equity and avoid a foreclosure record
- Chapter 13 bankruptcy -- repay arrears over 3-5 years while keeping the home
- Reinstatement -- cure all past-due payments in a lump sum
- Deed in lieu -- with formal lender approval and written debt release
About Barrett Henry
Barrett Henry is a Broker Associate at REMAX Collective with more than 23 years of Florida real estate experience. Barrett helps homeowners in foreclosure understand their real legal options and avoid schemes that could make their situation worse. For Tampa Bay homeowners, Barrett provides direct service. For homeowners statewide across all 67 Florida counties, Barrett connects clients with trusted local agents through a statewide referral network.
Facing foreclosure and not sure what to do? Contact us for a free consultation -- no cost, no obligation.
