Quit Claim

Guest 0.10 Dollars($)

My ex and I divorced in December of 2004. The agreement was that he would stay in the marital home, I would sign a quit claim deed, and he would be solely financially responsible for it. The divorce decree mentions this specifically.

I did.

My question now becomes, how do I get myself taken off the mortgage? He is not willing to refiance, unless I pay the difference.

jameshogg

Hi tea cozy,

Welcome to forums.

I believe you should have refinanced right at the time you were divorced. Anyway, now that you haven't done there is still time but who made the payments since you signed the quitclaim deed?

He is not willing to refinance, unless I pay the difference.

What exactly do you mean by the "difference" here? Perhaps your ex-husband isn't qualifying for a loan amount equal to the balance; may be somewhat less and that's the reason he wants you to pay for the difference. Is that so?

Thanks

gmakerley · Posted: Thu Feb 21, 2008 7:26 am Post subject:

i would imagine that your divorce decree spells out the terms of your property settlement precisely. i would also imagine that your former spouse is asking you to pay "the difference" even though he is not likely to be entitled to it.

as for removing your name from the mortgage, that is not a possibility as long as that loan remains outstanding. once again, however, your divorce decree should be pretty explicit as to your lack of responsibility for payments. no reasonable lender would violate the decree's stipulation absolving you of responsibility for payments.

if your concern (as far as dropping your name from the note) is your ability to obtain new financing, i submit that this concern is not necessary. once again, in dealing with quality lenders, you should find that they will not consider that as a debt in qualifying you for financing. just be sure you submit your documentation with every request for credit.

as far as your former spouse is concerned, you will need to stay on top of the situation to ensure that he continues to make payments on time, as your credit score will suffer should there be any delinquencies appearing. this is probably the worst outcome of his lack of refinancing, but if he can maintain prompt payments, you ought not to have any difficulties.

Guest 0.10 Dollars($)

Yes, the decree is specific in that he retains the home and any and all payments associated with it, while I am absolved of responsibility.

He does make enough to refinance on his own, but when we did the original financing, the interest was 3.9%. If he refinanced now, the interest would be substantially higher, and that would be the difference that he wants me to pay for him to refinance.

He has been making the payments on time.

I hadn't even thought about this until recently - I purchased a vehicle, and my interest rate was higher, because I have an $800.00 house payment. I explained the situation, and offered to provide a copy of the decree, and was told that unless I can remove it from my credit report, it would be an issue.

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

Hi tea cozy,

Welcome to the forum.

I think if you ex makes the payments on time then it should not be much of a problem for you. As if he refinances the loan now on his name only then the rate may go up. So he may not agree to refinance.

I think novation may be a solution here. Consult with the lender and your ex-husband and see if novation can be done here to remove your name from the mortgage responsibilities.

Best of luck,
Larry

gmakerley · Posted: Fri Mar 21, 2008 2:15 pm Post subject:

i doubt the car dealer could help after the fact but a mortgage lender should have flexibility as i stated earlier.

novation ought to be an option, as larry noted.

jheard · Posted: Sat Mar 22, 2008 10:04 am Post subject:

Check with your divorce lawyer. You must enforce the divorce judgment.

This is not a property law question.

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