| Author |
Message |
|
|
 puffdanny2k
Joined: 24 Apr 2008
Posts: 4
2.69 Dollars($)
|
 Posted: Thu Apr 24, 2008 12:33 am Post subject: In a Divorce Buyout, how are the Quitclaim Deed and refinanc |
|
|
My wife and I are divorcing and we agreed that I should buy her out of her interest in the house. I understand that I have to get a refinance to get her name off the mortgage (and also so she can get her share of the house equity), and that she'd have to sign a Quitclaim Deed to get her name off the title. The problem is my wife's insisting on not handing over the Quitclaim until she gets the cash-out from the refinance. My questions are:
1) Can I get (and close) a refinance without her having to sign the Quitclaim immediately?
2) If NO to #1, can we use the escrow to handle the transfer of the Quitclaim and the loan cash-out? Also, will the escrow handle the recording of the new title using her Quitclaim?
3) Since the cash-out does not cover her full share of the equity, will the escrow allow me to deposit the remaining balance.
Thanks in advance for your answers. |
|
| |
|
 |
larry
Joined: 27 Jun 2007
Posts: 2951
411.26 Dollars($)
|
| Posted: Thu Apr 24, 2008 12:46 am Post subject: |
|
|
Hi puffdanny2k,
Welcome to the forum.
You are refinancing the mortgage on your name to release her from the mortgage. So she should quitclaim at that time. But I don't think that escrow will help you to pay the recording the deed or paying your wife. BTW you can always talk with the escrow company about this.
How long have you taken the mortgage and how much equity do you have on that property?
Best of luck,
Larry |
|
| |
|
|
puffdanny2k
Joined: 24 Apr 2008
Posts: 4
2.69 Dollars($)
|
| Posted: Thu Apr 24, 2008 1:07 am Post subject: |
|
|
I've gotten several Good Faith Estimates from a couple of lenders and they all include a line item for "1201:Recording Fees" - isn't this the same as what you mentioned "recording the deed"?
My problem is the wife is paranoid about not handing over the Quitclaim unless she gets the cash-out. That's why I suggested to her we use the escrow to handle all the transfers, but she doesn't think that's necessary. I read in another forum that the Quitclaim is required before the loan can close. |
|
| |
|
|
larry
Joined: 27 Jun 2007
Posts: 2951
411.26 Dollars($)
|
| Posted: Thu Apr 24, 2008 2:07 am Post subject: |
|
|
Hi puffdanny2k,
| Quote: | | Since the cash-out does not cover her full share of the equity, will the escrow allow me to deposit the remaining balance. |
Are you trying to say that even after the cash out refinance you cannot pay off your wife her share of the equity and that is why will the escrow company pay off that money to your wife? If so then I think the escrow company will not pay off.
"1201:Recording Fees" are different. It is mortgage recording fees. Recording fees of the deed is not included in the Good Faith Estimate
Best of luck,
Larry |
|
| |
|
|
gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 818
Location: bloomfield, ct
51.66 Dollars($)
|
| Posted: Thu Apr 24, 2008 6:25 am Post subject: |
|
|
everyone is making more of this than is necessary.
your refinancing and your wife's quit-claiming of the property can take place at the same time. the lender will not grant you a mortgage as an individual while another party holds ownership; therefore, the quit-claim would need to be recorded prior the mortgage being recorded. this can be done within minutes of each other, of course.
whoever is handling your closing - lawyer, title company, etc., would be able to handle all the documentation, as well as handling the transfer of a check to your wife.
frankly, this whole transaction ought to be able to be handled smoothly, without ruffling her feathers, while still allowing you to do what you need to do to obtain the refinance.
_________________
George M. Akerley
Relationship Manager
First Horizon Home Loans
37 Jerome Avenue
Bloomfield, CT 06002
860-286-9133
www.gmakerley.net |
|
| |
|
|
puffdanny2k
Joined: 24 Apr 2008
Posts: 4
2.69 Dollars($)
|
| Posted: Thu Apr 24, 2008 2:38 pm Post subject: |
|
|
| Quote: | | Are you trying to say that even after the cash out refinance you cannot pay off your wife her share of the equity and that is why will the escrow company pay off that money to your wife? If so then I think the escrow company will not pay off. |
No, I think you misunderstood what I was trying to say. I will have a certified check in the amount that would cover the remaining balance of her share of the equity (her total = cash-out + check). Will the escrow company allow me to deposit this check into the escrow and then transfer the lump sum (cash-out+check) to my wife? |
|
| |
|
|
puffdanny2k
Joined: 24 Apr 2008
Posts: 4
2.69 Dollars($)
|
| Posted: Thu Apr 24, 2008 3:25 pm Post subject: |
|
|
| Quote: | | frankly, this whole transaction ought to be able to be handled smoothly, without ruffling her feathers, while still allowing you to do what you need to do to obtain the refinance. |
Well, my wife's paranoia is getting the best of her. That's why I suggested having the escrow company handle all the transfer procedures:
- she deposits the Quitclaim to the escrow.
- however the Quitclaim needs to be processed so that the title is solely in my name, the escrow company should handle that.
- when the new mortgage is recorded, cash-out is deposited into the escrow.
- I deposit my check into the escrow to cover the rest of her equity balance.
- lump sum is transferred to my wife.
Did I get the process right or am I off-base somewhere? |
|
| |
|
|
jenkin7
Joined: 04 Jun 2007
Posts: 887
132.55 Dollars($)
|
| Posted: Fri Apr 25, 2008 2:31 am Post subject: |
|
|
Hello puffdanny2k,
As far as I got it you want to deposit the cashout and the check to the escrow and the escrow will give these to your wife. So if your wife has no problem with that then I feel you are on the right process. But why don't you giving the cashout and the check to your wife directly? That seems better for me. |
|
| |
|
|
Guest
0.10 Dollars($)
|
| Posted: Fri Apr 25, 2008 7:15 am Post subject: |
|
|
| puff, i think your analysis of the situation is correct - that the escrow company ought to be able to handle this entire transaction. perhaps your wife needs to speak directly with them in order to allay her fears. |
|
| |
|
|
Guest
0.10 Dollars($)
|
| Posted: Fri Apr 25, 2008 9:00 am Post subject: |
|
|
Thanks all for your responses.
| Quote: | | ...But why don't you givingthe cashout and the check to your wife directly? That seems better for me. |
My wife is a little paranoid about the transfer. I'd rather not handle the cash-out directly as this gives her concerns about me not handing this to her. The escrow solves all that as it will receive the cash-out and release it to her directly. It won't even pass through my hands.
| Quote: | | puff, i think your analysis of the situation is correct - that the escrow company ought to be able to handle this entire transaction. perhaps your wife needs to speak directly with them in order to allay her fears. |
Yes, I told her to give the escrow company specific instructions on how all transfers will execute - after all the instructions are legally binding, right? This should allay her fears.
One question though - will the escrow company charge me extra for this arrangement?
_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant |
|
| |
|
|
gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 818
Location: bloomfield, ct
51.66 Dollars($)
|
| Posted: Fri Apr 25, 2008 12:34 pm Post subject: |
|
|
that's a question you have to ask them, i guess.
i would think, however, that this ought to be standard practice on their end; so an extra charge? i'd hope not.
_________________
George M. Akerley
Relationship Manager
First Horizon Home Loans
37 Jerome Avenue
Bloomfield, CT 06002
860-286-9133
www.gmakerley.net |
|
| |
|
|
