My ex-wife and have completed our divorce and have had our Ch 7 Bankruptcy totally discharged. I am currently living in the house that is in the foreclosure process. Both of our names are on the Mortgage loan and the foreclosue lawsuit is brought against us both.
I am going to try to request a loan modification so see if I an keep the house and she is fine with that and has no interest in a house with negative equity like ours. However, before they will even talk to me about the terms of any modification term, I have to have her sign a quit claim deed.
Here's my question: If she quit claims this to me, and the modification does not get completed and we are foreclosed on, will she be released from any foreclosure liability since she quit claimed the house to me?
Hi ... I can only tell you what Florida Law holds in connection with your question. But I also venture to speculate that Kentucky Law is going to be similar to that of Florida's. I would advise you to also consult with a local attorney with respect to this question. Having said that, essentially, if you and your wife both signed the Note, then, you are both going to be held responsible for its repayment regardless of who actually owns the house. Think of it as a credit card. If you both signed on the card as joint account holders, the bank will come after both of you even though only one of you uses the card. Quit claiming the home in this case will probably not help your wife. In order for you to be sure that she is on the Note, I encourage you to check your loan documents and look for the Note (not the mortgage). If you can't find the Note copy, then, check your mortgage statement. Often, the monthly mortgage bill has the names of all people who are on the Note. If you are both on there, then this means you are both on the Note and it also means that you will both be pursued by the lender regardless of whether or not you quit claim it to her.
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