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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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.)
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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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