my boyfriend

Guest 0.10 Dollars($)

my boyfriend is in the process of a divorce. him and his ex have a home together and she verbalized that she does not want the house. I have been looking into the quitclaim deed becasue he wants to refinance his home. But she wants her name off the house. if and when he files this..and refinaces the house does that mean that when their divorce is finalized that she has no per say in what she gets from the equity of the home? like interest and what not...would be great help!

gmakerley · Posted: Fri May 02, 2008 2:49 pm Post subject:

i think your assessment of the situation is right. if the quit-claim and refinance are handled prior to the divorce, that is the end of it.

if she has an attorney, she'll get legal advice telling her to do just the opposite, i would think.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Guest,

Is it that your boyfriend's ex wants to quitclaim the property? As it is a mortgaged property has your boyfriend consulted with the lender?

Are you buying her out? That means paying her for the share of equity that she has? I think if you pay her the share of equity then she may agree to quitclaim and also boyfriend will have to take the mortgage on his name only by refinancing.

Feel free to ask if you have any further questions.

Best of luck,
Larry

cliff · Posted: Fri May 09, 2008 8:11 am Post subject:

Hi Guest,

A quitclaim deed would work but, it depends on which state you live in. Some states will not accept a quitclaim deed as a transfer of ownership when a couple has been married. The reason being is because many times exwife/exhusband can claim they did not understand what they where signing.

A safer way to transfer interest would be like Larry was saying pay the exwife some payment for her share of the interest in the property. Then have her sign a "warranty deed". This will ensure that your legal documentation would hold up in a court no mater which state you are in.

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.77 Dollars($)

Hello Cliff,

I agree with you with your suggestion that the original poster should pay his ex-wife for her share of the interest in the property but do you think that they can use a Warranty deed?

As it is a mortgaged property can he use a warranty deed?

cliff · Posted: Sat May 10, 2008 10:59 am Post subject:

Hi Jenkin
Yes most definitely. The deed of trust and the warranty deed are two separate attachments to the property. Therefore, he can transfer interest without any problem via the warranty deed. In addition, since his ex wants off the house it is the soundest way to ensure she is off the property. All he would want to make sure and do is have her sign a document stating that she understands that by signing the “warranty deed” she is giving up her interest in the property.

Quitclaim deeds work but, since the guest was concerned about the ex-wife coming back and saying she is owed some proceeds/equity from the property, it would behoove the guest to use a warranty deed. This is because the warranty deed is just as easy to obtain as a quitclaim deed but, holds “much more weight” in a court room.

Side note: since they are getting divorced the lender would not have anything to say about him still owing on the property and transferring interest without their approval. In addition, all the lender cares about is that they receive their money on time. In other words “no harm no foul” with regards to violating his loan covenants.

By the way great question!

Guest 0.10 Dollars($)

Hey Cliff,

But my attorney said that you cannot use a warranty deed it there is a lien on the property. So if the property is mortgaged then is it lien free? If it is not lien free then how can he use a warranty deed?

cliff · Posted: Mon May 12, 2008 6:30 am Post subject:

Well it depends on what kind of attorney you spoke with and which state you are in.

What kind of attorney did you speak with?

Which state are your in?

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