Posted: Thu Dec 21, 2006 1:33 am Post subject: Signed Quit Claim but still on Loan
I bought a house that I foolishly put my ex's name on the loan and the deed. When we broke-up, she made me pay her the total of all of the equity we had in the house to sign a Quit Claim deed. She signed and it was filed, but I didn't think to take her name off of the loan. It's 3-years later and she is in financial trouble and I'm concerned that her problems may affect my credit. I talked to my lender and took all of the steps to do a Qualifying Assumption, however she won't sign the paperwork, thinking that she can strong-arm me for more money when I try to sell the house one day. Here's the conundrum - the lender won't take her name off the note without her signature HOWEVER I can refi without her. If I were to do that, I'd go from a 5.25 30-year fixed to today's rate which is much higher plus closing costs, etc.
Is there any way to remove her by possibly proving that she has never paid me a dime for the house or could I possibly sue her for half of the monthly mortgage since she's still responsible for the loan? Thanks for your help.
Posted: Thu Dec 21, 2006 2:03 am Post subject: RE: ex-spouse to sign papers to take the name off loan
Hi Guest,
Welcome to this community.
You may sue her for not paying the loan but then what I know is that the lender can charge you for the entire payment as your name is on the deed. The lender actually wants to secure his interest in the property. Since your ex-wife is not willing to pay even though her name is on loan, the lender may ask you to satisfy the debt.
I feel that you should try to convince your ex-wife to sign on the paper so that her name can be taken off the loan and you can go for the qualifying assumption.
Did your ex-wife give you in writing that she"ll be making her half of payments? If that is the case., then you can request the lender to help you by insisting that she should pay him a part of the payments. _________________ Procrastination is the enemy of your financial sucess
Posted: Thu Dec 21, 2006 4:19 am Post subject: Thanks
Thanks for the replies. My concern is not my financial situation; it's hers. And the fact that she feels that she can blackmail me for more money when I try to sell the house someday down the road.
Based on the information you've provided, her financial situation shouldn't have any impact whatsoever on your credit, your loan, or your house. And as long as you keep your payments current, it really doesn't matter that her name is still on the loan.
And how could she possibly blackmail you? She has no ownership or interest in the house. You can sell it, refinance it, whatever you want to do. YOU are the owner, not her.
But instead of taking my word, or anyone else's here, you may want to seek legal advice to remove any doubt.
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