Filed a quit claim--leverage to get off the mortgage?

tamaramallory · Joined: 07 Feb 2008 Posts: 1 1.37 Dollars($)

I am a co-owner of a rental property. The other partner pays the taxes, and mortgage and takes all the tax benefits. I want out of the property and have quit claimed my part to her. She refuses, however, to get me off the mortgage, saying she can’t refinance. What leverage do I have to get her to get me off the mortgage? Can I take the tax deduction for 50% of the mortgage interest and real estate taxes if I didn’t pay any? There is no income generated from the rent--the rent barely pays the mortgage and taxes. Thanks for your time! Sally

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Sally,

Welcome to the forum.

You should contact with the lender ASAP and see if he can allow you mortgage assumption or novation. Through novation also the other co-owner can take the mortgage on her name.

Regarding tax deduction I think if you do not pay the mortgage you cannot get tax deduction. But better consult with a tax assessor.

Feel free to ask if you have any further questions.

Thanks.
Larry

0.10 Dollars($)

Thanks for your quick reply, Larry!

Can she legally sell the house without my authorization if I'm still on the mortgage but not on the deed?

sara

Hi tamara,

You cannot get tax deduction on the mortgage interest because of two reasons:

1. You are no longer on the title
2. You don't make the loan payments

To get your name off the loan, you have to convince your partner so that the latter refinances the loan in his name. And if he's not listening, have a talk with lender in this regard.

Since you are not on the deed, she can legally sell the home but she'll have to make sure that she pays the lender whatever amount is due.

Take care

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