Posted on: 01st Nov, 2009 12:27 am
I live in a community property state, Texas. My husband and I are still married and own a house, but he owes a lot of money. Can he sign the quit claim to be removed from the deed to avoid creditors going after the house? I would appreciate it if someone can help answer this question.
If your husband is on the mortgage (the note), you can quit claim him, but this will not take them off the mortgage, or rather, lien against the home. The note holder can still come after the house.
Other creditors that can come after your home are,
the government, if you owe property taxes, city, county or state.
In some states, it's possible that if you don't pay your income taxes, the IRS can seize the home. But this is very unlikely.
Or if you are party to a lawsuit, and someone wins the judgement against you. That person has the right to come after your personal property.
I am pretty sure other than that, there are laws against your home being taken. I shutter at the day that we take out a walmart credit card and if we default, walmart would own our house.
It's just not how it works.
Another option to consider, I don't always suggest it, but your husband has some credit problems he obviously can't get ahead on.
Chapter 13 bankruptsy. Your debts could be taken care of, but if you are behind on your mortgage, it stays the foreclosure as long as the chapter 13 is in place and gives you about 3 to 5 years to catch up and save your home. In some cases the mortgager can file for relief from the automatic stay and still try to foreclose on the home. It's just a chance you take.
I hope some of the information helps.
Other creditors that can come after your home are,
the government, if you owe property taxes, city, county or state.
In some states, it's possible that if you don't pay your income taxes, the IRS can seize the home. But this is very unlikely.
Or if you are party to a lawsuit, and someone wins the judgement against you. That person has the right to come after your personal property.
I am pretty sure other than that, there are laws against your home being taken. I shutter at the day that we take out a walmart credit card and if we default, walmart would own our house.
It's just not how it works.
Another option to consider, I don't always suggest it, but your husband has some credit problems he obviously can't get ahead on.
Chapter 13 bankruptsy. Your debts could be taken care of, but if you are behind on your mortgage, it stays the foreclosure as long as the chapter 13 is in place and gives you about 3 to 5 years to catch up and save your home. In some cases the mortgager can file for relief from the automatic stay and still try to foreclose on the home. It's just a chance you take.
I hope some of the information helps.
elnora,
thank you so much for your quick and detailed answer. you are a true expert!!! i am the only loan applicant on this property, so my husband does not have mortgage, and he has not made one payment since the loan inception. based on the community property laws, i had to put him on the deed.
recently, i found out that he has a lot of credit card debts under his name (not jointly owned credit cards), and some collection agencies have started threatening him for payment. i am debt-free and pay all expenses on the property, including property taxes. i owe nothing to the government, including irs.
so far, no liens have been placed on this house by any of these credit card companies, so i am thinking of two options: 1) let my husband quit claim to me so that his name can be removed from the deed and title and 2) sell the house.
selling the house may be an option, but i am not ready to put it on the market until next year, probably march. however, i have a 5 year arm which is going to have rate change on 08/01/2010. in case i can't sell the house before then, i am thinking whether or not i should refinance the house now. during the refinance process, is it a good time to remove my husband's name off the deed? in the end, i still don't want the his creditors to come after my hard-earned house.
any suggestions? thanks!!!
thank you so much for your quick and detailed answer. you are a true expert!!! i am the only loan applicant on this property, so my husband does not have mortgage, and he has not made one payment since the loan inception. based on the community property laws, i had to put him on the deed.
recently, i found out that he has a lot of credit card debts under his name (not jointly owned credit cards), and some collection agencies have started threatening him for payment. i am debt-free and pay all expenses on the property, including property taxes. i owe nothing to the government, including irs.
so far, no liens have been placed on this house by any of these credit card companies, so i am thinking of two options: 1) let my husband quit claim to me so that his name can be removed from the deed and title and 2) sell the house.
selling the house may be an option, but i am not ready to put it on the market until next year, probably march. however, i have a 5 year arm which is going to have rate change on 08/01/2010. in case i can't sell the house before then, i am thinking whether or not i should refinance the house now. during the refinance process, is it a good time to remove my husband's name off the deed? in the end, i still don't want the his creditors to come after my hard-earned house.
any suggestions? thanks!!!
If your husband suddenly transfers the property to you just to save it from the creditors, then it can be considered as a fraud and he could be penalized for it by the lender. Before asking him to transfer the property to you, it would be better to consult an attorney in this regard.
If you are in a community property state. I am not sure you can quit claim. I would call a title attorney in your area and ask. Texas only deals with attorney's when it comes to real estate transactions, so they would know best. If you look in the upper right hand corner of your screen, Joshua Heard is an attorney and in Texas, ask your question to him.
Like I said before though, regular credit card companies cannot come after your home. But the IRS...that is another story and that only happens in really serious offenses.
Like I said before though, regular credit card companies cannot come after your home. But the IRS...that is another story and that only happens in really serious offenses.
I was just doing some research, normally, unless you have 20% equity in the home, the IRS won't bother.
They need to be able to sell it and make something off it in order to get their money back.
I am pretty sure, that would hold true for most of the others wanting to take your home.
They need to be able to sell it and make something off it in order to get their money back.
I am pretty sure, that would hold true for most of the others wanting to take your home.
My wife has a lien against her. We have several homes. Her name is on all of the properties. We are going to contact the creditor to make a settlement. Would you suggest that until things are settled we do a quick deed to remove her name from the deeds and have only my name for now. also if something happened to me and her name is not on the deed would the properties not go to my wife?
I think I agree with Niiss... if i advise you to do this, it would be fraud. I would consult an attorney that specializes in this.