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tbowman1964 · Joined: 17 Nov 2009 Posts: 2 1.72 Dollars($)

My boyfriend and I purchased a home about 3yrs ago. Since then we have split up & he refuses to sell the house. He said that I must sign a quickclaim deed 1st and this must be recorded at the courthouse placing the property in his name before he can have the loan refinanced in his name only. He states this is my only option. Can you please tell me what my options are regarding this issue? I think he is trying to gain full control over the property, meanwhile leaving me financially liable for the remainder of the loan.

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Hi tbowman1964. If you are currently on the mortgage on the home, then yes, you would have to sign a Quit Claim Deed for him to refinance. But, for your own sake, you may not want to run out and do this. Being on the mortgage gives you 50% of the debt on the home. But being on title gives you 50% of the OWNERSHIP of the home. So, if you just want to GIVE the home away to him you can sign the Quit Claim Deed, but if you feel you deserve some equity of the home, because of the time and effort and funds you've put into the home, then you shouldn't sign the Quit Claim Deed until the day that he's closing on the home. If you think there's 10% equity in the home, then you deserve 5% of the equity. So make that a condition before you will sign a Quit Claim Deed - that he gives you 5% of the equity. Whether he gives that to you in cash prior to him refinancing, or gives that to you on the day he refinances (by pulling cash out of the home through the process of refinancing).
I hope this helps.

gmakerley · Posted: Wed Nov 18, 2009 9:54 am Post subject:

agreed...any quit claim deed ought to be coordinated with your former boyfriend's refinance transaction. if you need a lawyer to sort this out, it's worth the trouble. and i also agree that you ought to be entitled to 50% of whatever equity there may be in the property. if he can borrow enough new money to satisfy you with that, so much the better.

be very careful with quit claim deeds. they can be quite hazardous to your financial health.

jveenstra · Posted: Wed Nov 18, 2009 11:12 am Post subject: Refinance

You do NOT have to do a quit claim deed before your boyfriend can refinance. As a matter of fact, that is dangerous if you are owed something from the value of the property. Once you quitclaim deed, he may be able to refinance without you knowing about it or being involved.

He can refinance with you presently on the deed. At closing, you are taken off the deed, but, only if you agree. Anyone with an interest in a property--and, you are on title and have an interest--must be given two copies of the Right of Rescission at closing.

That means you can rescind and stop the whole refinance any time within 3 days of closing, or, you can agree to let the refinance happen.

gmakerley · Posted: Wed Nov 18, 2009 12:04 pm Post subject:

but john...in this case she'd not be refinancing, as the transaction would be taking place for the sole reason that he'd be buying her out. therefore, there wouldn't be any rescissions rights that accrue to her.

and of course that's why the quit claim deed won't be finalized until rescission rights no longer exist and the deed and the corresponding mortgage deed will be recorded at the same time (back to back).
do you not agree?

jveenstra · Posted: Wed Nov 18, 2009 1:30 pm Post subject: Refinance

I agree as long as there is a legal buyout agreement so that the closing agent knows to whom to disburse what.

The important thing is that she does not quit claim before she knows what she is getting and how to confirm she will get it.

Basically, the boyfriend is incorrect saying she must quit claim before she can refinance.

What I suggested works without a buy out agreement, but, does not work to protect here from getting money disbursed to her without the buy out agreement. So, I sit corrected.

While you mentioned she needs a lawyer to sort out, until your last comment no one appropriately mentioned a buy out agreement---which talking to an attorney implied.

So, to the original question:
1. Do not quit claim until you have a buy out agreement
2. When you have a buy out agreement, do not quit claim before closing

gmakerley · Posted: Wed Nov 18, 2009 9:34 pm Post subject:

we are definitely in agreement here, john; looks like phraseology and semantics get in the way of clarity sometimes.

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Do you have to sign a quitclaim deed before someone can refinance a mtg loan?