Can i become completely univolved with a mortgage by a quick

fergdoll8888 · Joined: 31 Jul 2008 Posts: 2 2.38 Dollars($)

Can i become completely univolved with a mortgage by a quickclaimdeed & refinancing to the cosigner?

I recently cosinged with my boyfriend as the main borrower on a 119,000$ loan for him to buy a townhouse. I was the main b0rrower and he cosigned. We both have good credit. but he had no job history that would solely qualify him on the loan. Things aren't working out between us anymore and I don't want to be involved financially. I've never lived there and have not paid anything on his down payment or mortgage payments (1st one is due in sept). I have my own place and signed for the loan only to help him out temporarily. If i sign a quick claim removal to give him my share of the deed does that exempt me from any financial responsibilities with the home? Also if he refinances to take me off the loan and I'm off the deed will I completely not be involved then? Will this effect my taxes even if I'm off of everything?

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.80 Dollars($)

Hello fergdoll.

Welcome back.

If you quitclaim the property to your boyfriend and he refinances the mortgage on his name then you will no longer be responsible financially for this property. But as you are quitclaiming your share of the property you may be liable to pay the gift tax. As per federal laws the Gift Tax exemption limit is $12000. Feel free to ask the community if you have further questions.

Guest 0.10 Dollars($)

the only way you are off the hook for the loan is for him to refinance it out of your name, regardless of the quit claim deed. A quit claim deed just relinquishes your interest in the property, which you dont want to do until you are off the loan.

If he is unable to refinance, you guys may need to sell the house. If he refuses, you may want to hire an attorney to try to force a sale.
I used to work in mortgage servicing for a large nationally-known lender, and this situation happens fairly frequently. I have advised my own kids never to co-sign or buy a house with a friend/boyfriend for this reason.

There was one incident in servicing where 3 people had purchased a house together...one of them died, the other two were not getting along. One of the remaining two quit paying his share of the mortgage payment, leaving one person trying to make the payment all by herself, which she could not do by herself. Her credit was slowly being demolished, the other person was living in the house and refusing to move out or sell and not contributing to the monthly payment...she had to hire an attorney to try to make him agree to the sale, and it was dragging on and on. Her legal bills were huge. In the meantime, she was trying to pay the house payment all by herself. It was a real mess and something she deeply regretted doing.

I realize sometimes being a co-signor works out. But in mortgage servicing, I only heard about the situations when it didn't and there were many.
I advise you to try to work this out amicably with your boyfriend.

Guest 0.10 Dollars($)

sorry for the negative post above. I didnt realize how negative I sounded until after I posted it. I am assuming you have good relationship with your boyfriend...perhaps he can refinance into his name only now, or find another co-signor for the refinance.

gmakerley · Posted: Tue Aug 19, 2008 9:40 am Post subject:

never mind the negativity or perceived negativity, bailey. the bottom line is that co-signing for anyone is putting oneself in jeopardy. as you stated, the only way to be released from obligation is if he refinances the property with a brand-new loan. as you also stated, all the quit claim does is relinquish whatever rights one has to begin with.

i've seen parents lose homes over co-signatures for children. there is no soft-pedaling the impact it can have. anyone who contemplates such a move ought to have all the options up front, to prevent such a negative outcome.

Guest 0.10 Dollars($)

i quickclaimed over my part of my house to my husband when we divorced. he died 3 years later, with no will. come to find out he had a balloon payment due a year after i sign it over to him. he refinced at a higher interest rate and a lardger payment. my name was put back on it with out my knowledge does that cancel out the quick claim i signed?

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.03 Dollars($)

Hi Kathy,

If your name was added to title after the quit claim then yes. You can pull this data through your county recorders office.

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