My husband and I have agreed on our divorce and asset arrangements. We decided to settle this on our own and only seek legal help with filling the legal divorce paperwork. Our plan is to submit the quickclaim and remove his name from the home title. Although I’m able to make the monthly mortgage payment every month and have savings set aside for other needs. However, I’m unable to refinance the home due to my income at this time. Can I quickclaim the home title without refinancing the home home loan? Will the bank force me to refinance the home or refuse my current loan which we have for over 15years?
How will the existing loan affects my soon to be exhisband assuming I will pay the monthly mortgage on time and responsively?
Proper way to transfer title incident to a divorce is by interspousal transfer deed. A quit claim is not correct.
There are consequences to doing what you were proposing to do, and you are doing that without knowing what they are. Get your legal help now before you change title to anything.
Quitclaim deed and mortgage are two separate things. As long as your husband's name is on the loan, he remains responsible for the mortgage payments. In order to have his name removed you will need to have the property refinanced in your name and/or with any other co-signer.
You can't quitclaim the home to get husband off title; he has to quitclaim any and all interest that he may have; however, as Atty Straus says, the appropriate document is the Interspousal Transfer Deed. He remains liable for the mortgage.
This is why it is best to hire counsel in divorces where there is real property involved. Filing a quit claim is not the answer nor is filing any transfer title deed the answer to the issue of financial liability. A loan company can't remove his name from the loan simply by title or judgment. The only sure way to get a party's name removed is to have one party buy out the other party AND get qualified by the mortgage company to resume the loan balance on your own OR, if neither party can qualify then you will need to sell the home to remove the other person from title. Even if the parties have an agreement that one spouse is to be responsible for the loan and the other spouse then agreed to indemnification, the mortgagte company is still not obligated to take the one party off the loan. If the paying party defaults, then the remaining spouse on title could still be held financially liable for the default. Assuming you actually do pay the loan responsibly, then eventually you husband will still need to sign off on the title when it is fully executed and cleared. My suggestion is, that if you CAN qualify to refi and pay him off, then do it and then you will have clear title all to yourself. Otherside, even with a judgment and a quitclaim deed, you will still have a clouded title as the mortgage company will NOT release their lien until it is paid.
I agree with what my colleagues wrote.
In addition to their concerns, be careful to review the terms of your mortgage to ensure your mortgage loan cannot be called by the bank for a breach of its terms. In some mortgages, a change in title can trigger certain provisions in the loan requiring you to re-qualify, refinance, etc. As others have said, it is essential that you obtain legal advice from a licensed attorney in your area, especially someone who is familiar with real property transactions incident to divorce.
This answer is provided as general information only. It does not create a legal relationship between the party seeking information and the attorney responding to the question. This attorney has not and cannot independently verify the facts provided by the questioner, which may be relevant to the response provided. It is in the questioner's best interests to seek the advice of an attorney specific to his or her outstanding legal issues.
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