quick claim worries

[sledge13]

What is the name of your state? California
I'm ashamed to admit how ignorant I was when signing my divorce papers. With that said, it was written that the wife (me) would attain a quick claim deed on both properties within 30 days of signing. I didn't realize that ment, although I would be taken off the title, I am still responsible for the mortgage and my credit could be effected. I'm concerned about this because my X is very irresponsible about paying his debts on time. He is also in deep debt at this time and his business is about to close down. Is it to late to change my mind? I'm surprized my attorney didn't explain this to me before signing. When I told my X I would sign a quick claim as soon as he refinaced and removed from all responsibility, he became very angry and hasn't given me my settlement, which he signed to do in 30 days.Please tell me what you recomend.What is the name of your state?

 

[mistoffolees]

What is the name of your state? California
I'm ashamed to admit how ignorant I was when signing my divorce papers. With that said, it was written that the wife (me) would attain a quick claim deed on both properties within 30 days of signing. I didn't realize that ment, although I would be taken off the title, I am still responsible for the mortgage and my credit could be effected. I'm concerned about this because my X is very irresponsible about paying his debts on time. He is also in deep debt at this time and his business is about to close down. Is it to late to change my mind? I'm surprized my attorney didn't explain this to me before signing. When I told my X I would sign a quick claim as soon as he refinaced and removed from all responsibility, he became very angry and hasn't given me my settlement, which he signed to do in 30 days.Please tell me what you recomend.What is the name of your state?

If your divorce is final and approved by the judge, there's little you can do. (If, on the other hand, it has not been signed by the judge, there's probably still time, but you will have to work quickly. Talk with your attorney.)

Even in the event that the decree was signed by the judge, you still have some actions you can take. If the order says that you were to receive your payment in 30 days and you have not, then you can file for him to be held in contempt. I don't know if your refusal to sign the quit claim is a valid defense on his part or not. Again, talk with your attorney.

In terms of explanation, the quit claim and mortgage are entirely unrelated. The mortgage is a document between the borrowers and the bank. If you both signed the mortgage, you're both responsible for the debt and the mortgage company can go after both of you. However, if you have a court order saying that he is responsible for the mortgage and he defaults, forcing you to pay, then you can sue him for contempt to recover your money. The only way to remove your legal responsibility is for the other party to refinance. You can not simply agree that you're not responsible, nor can the court say that you're not responsible because you have a contract with the lender who is not party to the divorce.

The quit claim says that you have no right to the property. In general, it is often a bad idea to sign a quit claim unless the mortgage is being refinanced, but there are exceptions.

There are a couple of reasons why it might not be a big deal to leave an old mortgage in place and still sign the quit claim. If, for example, the other party has extensive assets more than sufficient to cover the mortgage debt, then your risk is lower. If he refuses to pay the mortgage and you have to pay it, you could always sue him and collect his other assets to pay it. (Also, if he has that many assets, he's less likely to stop paying the mortgage because of what it does to his credit rating). Another reason that it's not a big deal is if the mortgage amount is very small relative to the value of the property. If he defaults, the house can easily be sold for enough to cover the mortgage debt.

Still, even if he has a trillion dollars in cash sitting in the bank, it's better for you if he refinances because that mortage is going to count against your borrowing ability.

 

[sledge13]

Thank you Yes the papers were just signed by judge last month. He doesn't have many assets, both his properties were recently apraised at not much over what it owed, due to the fall in the housing market and he barrowed on the first to buy second last year. I can't afford to pay the mortgage if he doesn't. So what you are saying is mainly it will affect my barrowing ability?

 

[mistoffolees]

Thank you Yes the papers were just signed by judge last month. He doesn't have many assets, both his properties were recently apraised at not much over what it owed, due to the fall in the housing market and he barrowed on the first to buy second last year. I can't afford to pay the mortgage if he doesn't. So what you are saying is mainly it will affect my barrowing ability?

If the orders were signed by the judge, you're legally obligated to do whatever the orders say. if they say you have to provide a quit claim deed, then you have to do it or you're in contempt. if they say he must refinance, then he has to do it. If the orders say he has to give you $xxx in settlement, he has to do it.

I don't believe you can refuse to do your part because he hasn't done his part (unless the order specifically says you sign the quit claim AFTER he pays the settlement, for example). Rather, you have to do what the court told you to do. if he fails to do his part, then you file for contempt - and ask the judge to make him pay your legal expenses for the contempt filing.

If there's nothing in the divorce decree requiring him to refinance, then you're probably stuck. Any credit check will show that you have that mortgage obligation. If the value of the mortgage is much lower than the home value, it may not hurt you much, but it's definitely on your record. The best you can do is hope that he pays on time.

 

[Bali Hai]

If the orders were signed by the judge, you're legally obligated to do whatever the orders say. if they say you have to provide a quit claim deed, then you have to do it or you're in contempt. if they say he must refinance, then he has to do it. If the orders say he has to give you $xxx in settlement, he has to do it.

I don't believe you can refuse to do your part because he hasn't done his part (unless the order specifically says you sign the quit claim AFTER he pays the settlement, for example). Rather, you have to do what the court told you to do. if he fails to do his part, then you file for contempt - and ask the judge to make him pay your legal expenses for the contempt filing.
If there's nothing in the divorce decree requiring him to refinance, then you're probably stuck. Any credit check will show that you have that mortgage obligation. If the value of the mortgage is much lower than the home value, it may not hurt you much, but it's definitely on your record. The best you can do is hope that he pays on time.

I would add that OP also file a motion for the judge to order her boss to give her a pay raise if the contempt filing doesn't pan out.

That way she will be more able to make the payments.