Need to remove ex-wife from deed and note.

freespirit1333 · Joined: 06 Jun 2006 Posts: 2 0.33 Dollars($)

Hi,

I am looking in to refinancing my commercial property. Currently the loan is in both my ex-wife and my names...as is the deed, even though in the divorce/settlement papers it states that I am sole owner and solely responsible for all of the debt. But the attorneys on both sides never did anything about the deed or the note (lots of reasons).

Now I am trying to refinance, in part to obtain the buyout money (we still own our house together as co-owners) for my ex-wife so she can buy a house of her own...as well as remove her name so the commercial note is only in my own name. Whew!

(We own the house outright...I just have to give her $300k by the time she turns 65, but I want her to have a house soon...so by cashing out some of the commercial property equity, I can refinance and get $300k for her...then I own the house solely (and yes, I will have her do a quit claim on that). I will also cash out about $100k for myself to use to keep fixing up my house and commercial building and upgrade my store.

So, the bank (will start with the same bank with the existing note...no, they won't simply take her name off the note, no matter how much we are all getting along...) mentioned that I needed to make sure the deed was ONLY in my name, since I was using that for collateral. And sure enough, that was never done, and I believe the correct process (according to a nice lady at the land office who used to do title work) is to draw up a "Quit Claim" deed...and both myself and ex-wife sign/notarize it and file it with the Court ($33.50 fee to file).

I know that my ex-wife will sign without a problem...even though there is a window of her still having her name on the note for the property she is signing away...partly because we trust each other...partly because the settlement/divorce decree clearly states I am the one responsible and owner...just that it isn't 'legal' as far as the bank is concerned.

Besides, it is certainly in my ex-wife's interest to have her name off the note, and to have the $300k now instead of waiting perhaps 15 years from now.

So, do you see any problems here? Can I just download a quit claim form off the Internet (I found one for $11.50)?

Any thoughts?

Thanks.

Steve

btw, we signed the property settlement almost three years ago, and were divorced a year and a half ago, and we both would like to get everything truly divided and separated properly once and for all...even though we will still act as co-parents to our 12-year-old daughter and almost-18 year old son.

And finally...as I haven't started the process yet...is it ridiculous to use a bank? I am talking about refinancing $850k existing note on a building assessed at $1.8m (and probably could sell for twice that...) and getting a new note of $1.25m ($850k payoff, $300k for ex-wife, $100k less costs of refinance for me).

blue · Posted: Tue Jun 06, 2006 12:55 pm Post subject:

Hi Freespirit,

Samantha · Posted: Tue Jun 06, 2006 1:11 pm Post subject:

Hi,

Welcome to MortgageFit Forums.

I appreciate the trust you have for each other even after your divorce and don't see much problem with you going for a quit claim deed.

Guest 0.10 Dollars($)

I feel that you shouldn't wait any further and go on with your decision. Get all things settled now and that will help keeping the relation healthy too.

freespirit1333 · Joined: 06 Jun 2006 Posts: 2 0.33 Dollars($)

Thank you everyone for some quick and sound advice. I will keep reading as more come in, but at least I can proceed on some things since no major alarms have been sounded.

First things first. (Thanks to Steven Covey)...I will get the Quit Claim Deed in order and have it checked by an attorney, then sign and notarize and have it done by my ex-wife as well. And yes, I will have multiple originals prepared, then take it to the Courthouse and file it. I have been told that the City (where the property is located...that uses the same County Courthouse) picks up the work three times a week and processes it quickly. So I don't expect a long wait. Meanwhile, I can make sure to work on my future expected earnings/cash flow so I can show that the loan will be serviced properly. I am told that any past years of low or no profit are not so much considered as what I will do differently...the changes to be made.

In my case, I have been living in two of the apartments in the commercial building...and since I will move back into my house, that additional rental income from the apartments will help, as well as securing some more leases on other parts of the building. Also, since everyone knows that a divorce takes its toll, no matter how 'no fault'...obviously I am in a better 'place' and can put more of myself into my business again since there was a lot of wasted effort stabilizing everything.

I feel confident that things will work out.

In the meantime, please keep looking over for any glitches in my scenarios...Thank you.

Samantha · Posted: Tue Jun 06, 2006 4:31 pm Post subject:

Hi,

Welcome again.

You do seem to be pretty well organized. Very Happy

Yeah you need to work out a proper plan on the future earnings right now and follow up with the deed preparation as well as look out for the refinance procedures and the terms that you are getting.

Best of Luck and do let us know about the proceedings from time to time. We will be eagerly waiting for that.

God bless you.

For MortgageFit,
Samantha

Guest 0.10 Dollars($)

My divorce was final in 1997. I waived my rights of the house to him through the court. The mortgage payments on the house are always past due and reflect on my credit reports. I signed a quit deed claim at the time of divorce,however, my ex has not refinanced the house in his name only. The mortgage company will not remove me from the existing loan. What can I do?

Niicss · Posted: Wed Sep 05, 2007 5:46 pm Post subject:

Did your divorce decree mention anything about who will have the responsibility of continuing the mortgage payments?

If it was stated in divorce judgment that he will have to bear the mortgage payments and rights over the house will go to him then you can go to court to make him refinance the mortgage in his name.

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