Release of Liability & Quit Claim

[Butter22]

My husband and his brother currently own a house together in Washington State. We were married just recently, and he moved out prior to that with the understanding that his brother would either keep the home and refinance in his name only, or they would sell the house.

His brother has decided to keep the house. Instead of refinancing, the bank that hold the mortgage has told them that they could do a "release of liability," and my husband would then do a quit claim. They say this will remove my husband's name from the mortgage. Of course, our concern is that if his name is not removed from the mortgage, we are therefore liable for the payments, should something happen to his brother's employment situation. The fear of being liable for two mortgages is keeping us from buying a home of our own.

We just wanted to clarify that this release of liablity and subsequent quit claim would indeed remove my husband's name from the mortgage note. Is there anything we should be aware of moving forward with this process? Any help is greatly appreciated!

Thanks in advance.

[nextwife]

Originally Posted by Butter22

My husband and his brother currently own a house together in Washington State. We were married just recently, and he moved out prior to that with the understanding that his brother would either keep the home and refinance in his name only, or they would sell the house.

His brother has decided to keep the house. Instead of refinancing, the bank that hold the mortgage has told them that they could do a "release of liability," and my husband would then do a quit claim. They say this will remove my husband's name from the mortgage. Of course, our concern is that if his name is not removed from the mortgage, we are therefore liable for the payments, should something happen to his brother's employment situation. The fear of being liable for two mortgages is keeping us from buying a home of our own.

We just wanted to clarify that this release of liabolity and subsequent quit claim would indeed remove my husband's name from the mortgage note. Is there anything we should be aware of moving forward with this process? Any help is greatly appreciated!

Thanks in advance.

Have the lender forward a copy of the release, and have an attorney review it. If it does the "job" and releases him, it is OK to proceed to have the release done in exchange for the QC deed (simultaneous delivery). Pay to have the docs released through an escrow or title company so that it's all done together.

[HomeGuru]

Butter, it is not that simple. Lenders today do not just release mortgagors from mortgages just like that. And I bet this is one of those situations. All the mortage releases I have seen recently do not terminate the joint and several liability of the mortgagors. If there is one, I'd like to know the name of the lender.