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which one is better - quit claim deed or refinance?

Posted on: 06th Oct, 2006 12:18 pm
i am going through a divorce and my soon to be ex has offered a settlement amount which is reasonable, if i sign a quit claim deed.
my attorney is advising me not to do this unless my soon to be ex refinances the house. he said otherwise i'll still be responsible for the house according to the bank and it will show up when i try to get another house. i'm confused?
Hi Deb,

The lawyer is quiet right as the transfer of property will not remove your name from the mortgage and you would still be liable to make the payments.

If the mortgage is refinanced then your ex will be responsible for the payments and you will not have any liability of mortgage payments.

Burson
Posted on: 06th Oct, 2006 12:55 pm
Hi Deb,

When you will go to a new lender to get a mortgage they will check about your financial state, the previous mortgage will show up in your records and the lender may not agree to provide you with a new mortgage based on that.

If your ex refinances the current mortgage in her name then you will be removed from that mortgage. You can read this article which explains about the mortgage obligations after a quit claim deed is used to transfer property interest.

Thanks
James
Posted on: 06th Oct, 2006 01:48 pm
Hi Deb,

Your attorney has given you the right advice. If you quit claim the property to your would-be ex, you still have the liability to pay off the loan if the loan document mentions that you are responsible for the payments. The quit claim will not transfer the debt against your house.

If your ex refinances the loan in his name only, then after that you can quit claim. In that case, you will no longer have any interest in the house and also have no liability to pay down the mortgage.
Posted on: 08th Oct, 2006 02:54 am
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