Posted on: 03rd Dec, 2009 10:20 am
i am getting a divorce and my husband wants me to sign a quit claim deed. he is keeping the house. my question is, won't i still be financialy responsible because my name would still be on the mortgage note with the bank? he is trying to remodifiy the loan but again, needs my financial information. if i sign a quit claim deed giving him full rights to the house, does that also cover the financial side of it if he stops paying the mortgage payments?
Welcome cat,
As your name is on the mortgage document, you would be responsible for the loan though you sign a quit claim deed. Signing such a deed will only remove you from a property deed but your financial obligation towards the loan remains the same. In such a situation, if he stops paying the mortgage dues, the lender can sue you for the debts. Moreover, if the property goes into foreclosure, then your credit will be affected along with your husband. However, if he refinances the mortgage in his name, then you are not responsible for the loan any more.
As your name is on the mortgage document, you would be responsible for the loan though you sign a quit claim deed. Signing such a deed will only remove you from a property deed but your financial obligation towards the loan remains the same. In such a situation, if he stops paying the mortgage dues, the lender can sue you for the debts. Moreover, if the property goes into foreclosure, then your credit will be affected along with your husband. However, if he refinances the mortgage in his name, then you are not responsible for the loan any more.
cat you want to be sure that you don't provide him with a quit claim deed unless the loan is to be restructured as well, eliminating your obligation. as adonis indicated, a refinance transaction by your husband only would take you out of the mix, but that's the only way it will happen.
unless that loan is being refinanced, you can't afford to provide that quit claim. be wary.
unless that loan is being refinanced, you can't afford to provide that quit claim. be wary.
