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Currently, my husband and I hold a mortgage jointly on a property. We are going through a divorce and under the current market conditions he is unable to refinance the mortgage into his sole name. The bank says they can release me from liability simply by completing a "Release of Liability" document. Is this possible? Everything I have been told is that in order for me to be completely without liability is for my husband to refinance the mortgage so I am a little leary. The bank states that since they did not sell the loan and they still hold the note they can do this.

Please let me know if anyone has heard of this and if it is foolproof.

gmakerley · Posted: Mon Sep 29, 2008 11:15 am Post subject:

hello bishop...from the information you've provided, it sounds like a reasonable thing. do you have an attorney representing you? i would think so - have the bank forward a copy of the document they propose to use to the attorney if you have doubts.

it sounds pretty straightforward to me, so i would be prone to move forward.

smithsussane · Posted: Mon Sep 29, 2008 7:46 pm Post subject:

Hi bishop!

Welcome to the Forums!

You can ask the bank to give you in writing about the "Release of Liability" If they do this and when they have said that this will release you from all the liabilities, I think you should believe them.

Feel free to ask if you have further queries.

Sussane

Guest

why not just use a quit claim deed? Is it really required to use a release of liability?

gmakerley · Posted: Mon Jun 08, 2009 12:45 pm Post subject:

a quit claim deed does not relieve anyone of responsibility for a debt. a release from the liability, however, would accomplish that. since that's what is desired here, the release of liability makes far greater sense.

jameshogg · Posted: Mon Jun 08, 2009 9:21 pm Post subject:

Hi peclarkjr,

Your query has been answered in the given page:
http://www.mortgagefit.com/quitclaim/liability-release.html

Check it out. I hope it'll help you.

Thanks

Guest

I have all three. Well 2. Quit Claim and Modification. I was denied the release due to the loan having been modified. 2 years after the whole process started. I am being told I should have done the release of liability before the MOD. Was told during the mod, that because the terms were being rewritten, it was the same as a refi and my ex's name would come off. Release of liability before Mod. Beware and be careful.

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