quit claims, novation

dbdasbury · Joined: 23 May 2006 Posts: 1 0.11 Dollars($)

My husband and I are soon filing for divorce. I want to relinquish my claim to the house to him. I also do not want to be held liable if in the future he loses the house to foreclosure. How is the best way to do both?

Jessica

Hi,

Welcome to our forums.

As you wish to give up your ownership rights to your husband, its better to transfer the rights through a title deed instead of a quit claim deed. For that, you need to talk to an attorney for preparing the legal papers and then record the deed at the office of the Registrar of Deeds. This will make the deed public and enhance its validity.

From your information, I guess you have a liability for paying off the mortgage and perhaps you want to get your name off the loan. In such a case, I shall advice that you can go for a refinance so that the new loan has only your husband as the borrower. Or else, you try to convince your husband and find out if he is interested in a novation.

A novation will allow him to take the responsibility of the existing mortgage and pay it off alone. But its the lender's approval that matter most. So if both of you agree then you should approach the lender for his approval.

Hope this will help you.

Regards,

Jessica.

Caron · Posted: Tue May 23, 2006 10:25 pm Post subject: RE:

Hi,

I think the best way will be to try for novation, as doing a refinance may cost you more. You will have to pay all kinds of loan fees and closing costs in case you cannot refinance with the same lender. And, you will also have to shop around for suitable rates and terms in case you cannot make the deal with the previous lender.

In case you have no other option but to refinance, just click here to get an idea about the costs involved.

Thanks,

Caron.

Guest 0.10 Dollars($)

My mother wants to give me her house. she already moved out and i pay the mortgage but how do i get both the house and the mortgage on my name. My bank said that i cannot get financing alone for the needed amount.

Guest 0.10 Dollars($)

Hi Marlene!

As you wish to get the house transferred to your name, you will have to sign a Quitclaim deed. Novation, on the other hand will help you in transferring the mortgage in your name. You will have to go for both because quitclaim will transfer the house and novation will transfer the mortgage.

However, you should note that novation requires the approval of the lender. You can also do it by refinancing but most people avoid this as it is costlier and involves lot of junk fees. You can also consult a lawyer who will help you with the legal requirements of the process.

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