quit claim deed - nasty divorce

stevij2000 · Joined: 14 Jul 2008 Posts: 2 2.46 Dollars($)

My wife and I are currently going through an unfriendly divorce. I am paying one half of the mortgage and utilities for our marital property where she lives (the property is in both of our names,) and I am paying for rent and utilities for my apartment. Hence, I'm broke and lawyers are expensive.
She wants to purchase the house alone, and she says that she has been approved for a loan. However, she says that in order for her to be able to obtain a mortgage to purchase the house, I would have to sign a quitclaim deed.
I understand that by signing a quitclaim deed as a grantor, I give up all interest in the property, but I am still liable for the current mortgage. I believe that she would gladly go on living in the property and claim 100% interest while I would be forced to pay half of the mortgage.
Are provisions legally binding in a quitclaim deed? ie: "grantee must obtain a mortgage .... within a reasonable amount of time..."
Or, how would you handle this situation?
Thank you Kindly,
Stephen

Niicss · Posted: Tue Jul 15, 2008 12:19 am Post subject:

Welcome Stephen.

You should talk with the mortgage company regarding this. If she wants to buy the property, this can be done smoothly without having any problem. With your ex-wife, the mortgage company and your agreement she can refinance the mortgage on her name only and you can quitclaim the property to her at the same time. So talk with the company. I think this is the best way to go. But I feel an attorney's presence and guidance is needed to make the process error free.

Let me know if you have any further queries.

kpatrick · Posted: Tue Jul 15, 2008 6:16 am Post subject:

Hi Stephen,

Has the court ordered you to pay half of the mtg? If so, even if she refinances the home into her name, you will be released from liability with the mortgage co, but not with the court.

If there is equity in the home that you are expecting to ask for through the divorce, then I wouldn't sign it over until that has been resolved.

However, if there is no equity that you are asking for, then, in my opinion, it would be a good idea to get your name off the property, so that if she gets behind in the payments, it will not affect your credit.

But, like Niicss said, it is never bad to consult an atty to make sure your interests are protected.

Good luck!

Kim

jheard · Posted: Tue Jul 15, 2008 8:37 am Post subject:

Ask your divorce lawyer.

A deed is not a contract, so provisions in the deed are not necessarily binding. You will need a written contract. The contract should state that this is a settlement on your divorce judgment along with the sale provisions.

Do not give a deed without payment. You will be giving up any security interest you have in the property. Give her the deed when she gives you the cash, or do it as part of an escrow or closing.

Posted: Tue Jul 15, 2008 1:52 pm Post subject:

Ditto on all the caveats above but one point of concern. I wouldn’t be too quick on making her refinance. If the existing interest rate is beneficial, you may wish to check with the lender to see if you can be formally dropped from liability. Of course, it’s a nasty divorce and you’d be helping her but going the “extra mile” might help in other negotiations.

Just did one for a ex-husband where they had two jointly help properties and ex-wife was holding him hostage until she got “her equity”. One property was F&C and made a loan on it (his name only) to obtain needed cash for her; then got her released on the primary residence. A MI company was involved on the primary so it took longer (3 weeks) than I had anticipated but he kept his 5.75% rate on the primary and full title to both houses.

Watch out for any potential sleeper issues with state law but the attorney can walk you through this.

stevij2000 · Joined: 14 Jul 2008 Posts: 2 2.46 Dollars($)

Thanks for the response.
We experienced the mediation agreement and the marriage property orders die with the sale of the home - hhhhhmmmm.
The mortgage company is the only entity that could kill me, so that is the entity that I'm interested in - she's not a millionaire.
I'm just afraid because her financing company (which I discovered today is a new finance company) insists that I sign the quitclaim before closing her new financing package.

Do you or anyone else who may see this, experienced or have known how long a finance company can "drag-out" the mortgage payments once I sign quitclaim, and/or we sign an agreement?

Has the court ordered you to pay half of the mtg? If so, even if she refinances the home into her name, you will be released from liability with the mortgage co, but not with the court.

If there is equity in the home that you are expecting to ask for through the divorce, then I wouldn't sign it over until that has been resolved.

However, if there is no equity that you are asking for, then, in my opinion, it would be a good idea to get your name off the property, so that if she gets behind in the payments, it will not affect your credit.

But, like Niicss said, it is never bad to consult an atty to make sure your interests are protected.

Good luck!
Stephen

Niicss · Posted: Tue Jul 22, 2008 5:47 am Post subject:

Hello Stephen.

I should say that you need not to sign the quitclaim deed if your wife doesn't refinance the mortgage? If she can refinance or pay your share of home equity then you should not have any problem to sign the deed.

Let me know if you have any further queries.

Guest

after divorcing my ex-husband 4 years ago in texas, i signed a quit claim deed so that he would be able to refinance the house and get it in his own name. it was written into the divorce that he would complete this task within 3 months of the divorce or get written notice to me with explanation for need of an extended period.

neither of these things were done, and now, he has recently passed away, leaving his current wife and young daughter in the house.

what, if any rights, do I have in the house? the quit claim deed was not notarized.

my concern is that i am solely responsible for the house now without any legal ownership. please explain this to me. i will be most grateful.

jameshogg · Posted: Sun Nov 09, 2008 11:47 pm Post subject:

Hi kristin!

Your query has been answered by our community members in the given link:
http://www.mortgagefit.com/texas/quitclaim-refinance.html

Please have a look and I hope it helps you.

Thanks.

Guest

Hi, I have a question about what I have read in this thread.

My partner left his wife 9 months ago and has paid half the mortgage ever since but leaves him with £50 a month spare money. We heard that it is law to pay but also have heard that it depends on your circumstance cos she also gets tax credits of about £444 a month. Can someone please help.
I read in the thread about whether a jugde has made the person pay so does that mean he might not have to pay it. She also wants him to have 35% of equity in the house and her have 65% and still want him to pay half mortgage and sell house when kids leave higher education.

Thanks Lisa

Niicss · Posted: Fri Dec 05, 2008 3:07 am Post subject:

Hi LisaMarra

Didn't he asked his wife to refinance the mortgage? If the property is in the wife's name, he can simply ask the wife to refinance the mortgage and he will not be liable for paying the mortgage anymore.

As far as paying the mortgage is concerned, well, the mortgage will be payed by the person whose name is on the mortgage docs. If both have their name in the mortgage doc, then both of them can pay the dues.

Thanks.

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