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Arizona upside-down property and quit-claim

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hawkinsjm73

Junior Member
Arizona

Hello all,

My divorce is very nearly finalized, with the only remaining question the transfer of the marital house. My stbx is to receive the house. My lawyer is claiming the only way forward is for me to sign a quit-claim, and have language stating my stbx indemnifies me from the mortgage payments and must refi as soon as feasible. My lawyer also claims the judge would simply award the property to stbx and write a document that transfers it as if I had signed a quit-claim. I am unsatisfied with this, as it leaves me fully liable (in the banks eyes) for a property I have no claim on. I believe this will prevent me from buying another house for myself for up to 25 years, the approx. remaining length of the mortgage. My lawyer claims banks will overlook this debt in the future.

I am very unsatisfied with this and would like to find out if he is full of beans. To complicate matters, we have a court date in two days.
 


Ohiogal

Queen Bee
I would agree to a quit claim UPON refinancing and not before. And I would also want something regarding the fact that if the house is NOT refinanced within X amount of time it be sold with your ex assuming ALL of the negative equity and splitting the positive equity if any. Not nice but fair deal for tying up your credit. And no, banks will NOT over look the mortgage if you are responsible for it. They are NOT bound by a divorce decree.
 

LdiJ

Senior Member
Arizona

Hello all,

My divorce is very nearly finalized, with the only remaining question the transfer of the marital house. My stbx is to receive the house. My lawyer is claiming the only way forward is for me to sign a quit-claim, and have language stating my stbx indemnifies me from the mortgage payments and must refi as soon as feasible. My lawyer also claims the judge would simply award the property to stbx and write a document that transfers it as if I had signed a quit-claim. I am unsatisfied with this, as it leaves me fully liable (in the banks eyes) for a property I have no claim on. I believe this will prevent me from buying another house for myself for up to 25 years, the approx. remaining length of the mortgage. My lawyer claims banks will overlook this debt in the future.

I am very unsatisfied with this and would like to find out if he is full of beans. To complicate matters, we have a court date in two days.
Your lawyer is lying to you...and I do not know why. The banks will absolutely NOT ignore the debt in the future...and the mortgage company will hold you fully liable if your ex defaults on the mortage.

I would certainly never agree to sign a quit claim deed prior to signing at the closing table for my ex's refi.

While a judge might award the house to the ex, it would be more normal for a judge to order that the house be sold if the two of you cannot come to an agreement.

Now...its possible that your attorney has convinced the other side to give you other consessions that a judge wouldn't give you and that is why your attorney is pressuring you to agree...but even then, I wouldn't agree to signing the quit claim deed unless it was at the closing table for a refi.
 

hawkinsjm73

Junior Member
Thanks guys. You settled me. New lawyer it is. There really haven't been anything in the way of concessions that benefit me, much less things a judge wouldn't agree too.

Does Arizona generally allow for a reschedule for court dates in these kind of things?
 

nextwife

Senior Member
Dang, why do family law attorneys persist in telling their clients this FICTION? The lender is NOT a party to such an agreement, they underwrote the loan on the basis of ALL applicants being held responsible for the mortgage.

And, even if she NEVER defaults, the open loan STILL impacts your credit score and borrowing ability adversely.
 

hawkinsjm73

Junior Member
He was actually trying to tell me that FUTURE lenders would magically ignore the debt so I could get a home loan. I couldn't see how that could possibly be.

I have contacted another lawyer who believes quit-claims should happen at the refi table and will be retaining tomorrow.

P.S. nextwife
I'm the "she" :)
 

nextwife

Senior Member
He was actually trying to tell me that FUTURE lenders would magically ignore the debt so I could get a home loan. I couldn't see how that could possibly be.

I have contacted another lawyer who believes quit-claims should happen at the refi table and will be retaining tomorrow.

P.S. nextwife
I'm the "she" :)
The second lawyer is correct. No deed until the mortgage is being paid off.
 

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