My ex husband lives in the home. We are both on the mortgage and deed. He is asking me to sign a quit claim deed so he can proceed with a short sale. Is this okay and "safe" for me to do? Being that I'm still on the mortgage I can't help but think it's not a smart idea to waive my interest in the home however, I know I'm not going to get any money out of it. I just want to make sure this is the correct way to go about things and that my ex has accurate information and it's okay for me to sign the quit claim deed. Also, I have credit in the 900's. How much is a short sale going to effect me?
A quit claim deed WILL take care of this. If a short sale can be achieved, it will relieve your obligation on the debt. I cannot tell you exactly how much it will affect your credit, but it will be less of a hit than a foreclosure or bankruptcy.
What does your divorce agreement or judgment say regarding the property?
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Elder Law Attorney
Do not sign the quit claim deed. If you agree to the short sale, all you have to do is to cooperate with the contract and closing. If you sign the deed, you are giving up your interest in the house but remaining liable for the mortgage. A short sale probably will affect your credit, but how much? where is your ex getting his info? (A realtor is not an attorney.)
This response is based on the limited facts presented and is not intended to substitute for direct legal advice, nor is it intended to establish an attorney-client relationship. It is intended to direct you to issues which you may desire to explore further.
Do not quit claim, surrender your interest only at the closing of the short sale. Otherwise you will have the debt and no interest in the property. You should.discuss the planned transaction with your own counsel.
As for you credit rating, it will take a hit, borrow or refinance now
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