How to get out of loan and title

aj123 · Joined: 16 Jan 2006 Posts: 4 0.87 Dollars($)

wife and I are goin thru divorce. wife will not sell condo (joinly owned). will quitclaim deed free me of financial obligation and title responsibilities? please reply...thanks. A. Johnson

jerry · Posted: Mon Jan 16, 2006 7:43 pm Post subject: RE:

Hi,

I feel sad to hear about your divorce. You need to talk to your lender because if you have a mortgage on the condo in your name then you will not be free from your financial obligation even after you quit claim. To get rid of your financial obligation you need novation.

Thanks,
Jerry

aj123 · Joined: 16 Jan 2006 Posts: 4 0.87 Dollars($)

thank you Jerry for the quick response. forgive me for not knowing all the terms and phrases, but what is Novation? is that saying that I cant turn the property over to her for $1 and I am free'd up? I am in the military in Virginia, and I know that she wants to use the advantage of my V-A loan guarantee (that means $400/month mortgage vs $1000.00 rent in Virginia.) All I want is the $$$ and title free & out of my name. final divorce date is pending, and courts here are slower than molasses. what do you recommend a soon to be ex-husband like me do in this situation. I have been stressing this issue since May '05. please reply...thanks again!

aj123 · Joined: 16 Jan 2006 Posts: 4 0.87 Dollars($)

p.s.....the condo that me & my soon to be ex-wife was purchased @ $60k in late 2004. so I know that the re-finance price on a 30 year fixed rate loan/mortgage isn't impossible to achieve for my ex-wife. she makes 35k a year, so I know she can qualify for a new loan in her name....I think she is procrastinating...BIG TIME!!! I dont have looks like Brad Pitt, so I dont know why she is trying to hold on to me via the condo. someone, please tell me what you think

jerry · Posted: Mon Jan 16, 2006 8:03 pm Post subject: RE:

Hi,

Novation is a process which helps to transfer the liability of a mortgage from the original borrower to the new borrower under the approval of your lender.

I will also advise you that, to be on the safe side you should try to process the Novation formality first because if after your divorce, you sign quit claim deed and then your wife does not agree to take the responsibilty of paying the entire loan, then you will be held responsible for what you owe on your mortgage.

If you want you can also consult an attorney.

Thanks,
Jerry

aj123 · Joined: 16 Jan 2006 Posts: 4 0.87 Dollars($)

yes sir, thank you.... I have a Divorce Lawyer, & she never mentioned anything like this info to me...I wonder why (?). so I should contact the Bank Lender about this info ..correct? And if so, I should do that before I contact some Legal Reps to draw up the quitclaim? I think that is what I am understanding as far as the steps to my freedom are concerned. let me know if that is the correct procedure I should take.

#1 - contact my Lender and ask them for Novation formality first

#2 - seek the Legal rep's of mine to draw up the quitclaim deed

thank you once again...A. Johnson

jerry · Posted: Mon Jan 16, 2006 8:20 pm Post subject: RE:

Hi,

Yes this is the correct procedure that you should look to follow.

Please let us know if you have any other query in future. We shall try our best to help you.

Thanks,
Jerry

aj123 · Joined: 16 Jan 2006 Posts: 4 0.87 Dollars($)

I am on it sir......wish me luck. I will let the forum know my results...thanks again..AJ

jerry · Posted: Mon Jan 16, 2006 8:30 pm Post subject: RE:

Hi,

Our best wishes are with you. Do let us know how everything goes. We are always there to help you.

Thanks,
Jerry.

Guest

How does one avoid transfer tax? Fiance wants to add significant other to deed by filing quitclaim.
Thank you,
T

sara · Posted: Wed Oct 03, 2007 9:24 pm Post subject: RE: how to avoid transfer tax

Hi Taranee,

Welcome to the forums.

What's important here is the value of the property on which your fiance wants to add someone as the co-owner. This is because one can get an annual exemption on gift tax (a form of transfer tax) associated with quitclaim deed, provided the value of property does not exceed $12000 (limit for 2007). To know more, just refer to a previous discussion on Gift tax exemption.

Take Care

Guest

I'M CURRENTLY UNDER MY SISTERS MORTGAGE... THEY WERE HAVING CREDIT ISSUES, AND ASKED IF I WOULD PUT THEIR HOUSE UNDRE MY NAME.. WE WERE SUPPOSED TO SWITCH THE OWNERS A YEAR AGO, BUT BC OF ISSUES HAVE NOT BEEN ABLE TO DO SO... THEY MENTIONED THAT THE ONLY WAY TO DO SO WOULD BE TO "BUY ME OUT" WHICH THEY CANT AFFORD TO DO... I'M GETTING READY TO MOVE OUT OF STATE, AND I DONT WANT THEIR HOUSE UNDER MY NAME ANYMORE, IS THERE ANYTHING I CAN DO.. WOULD A NOVATION BE OF ANY SORT OF HELP?

larry · Joined: 27 Jun 2007 Posts: 3328 474.61 Dollars($)

Hi De,

Welcome to the forum.

Lenders do not always agree for novation but should certainly consult with the lender and check out if novation is an option available for you.

Cannot they be able to refinance the house to take you out of the mortgage?

Best of luck,
Larry

sara · Posted: Fri Feb 08, 2008 11:38 pm Post subject: RE: need to get name out of loan

Hi De,

I don't understand whether you were at all on the title to your sister's property. You were on the loan and to get out that novation would be ok, even better and agreeable option would be refinance by your sister.

If at all, you are on the title, use a quitclaim deed to give up your rights and then your sister would have to choose between a novation and a refinance.

Take Care

Guest

Husband and his x-wife were divorced 3 years ago. She remarried and so did he but there was a Chapter 7 bankruptcy filed by her before the divorce against the house. He kept the house but because of her bankruptcy could not refinance because her name is also on the loan. How does he get her name OFF the loan and take complete ownership/responsibility of the house and the mortgage?

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