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Quit Claim Deed

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mmckinnon3

Junior Member
What is the name of your state? Florida

I have a situation that maybe someone can help me with please.

My ex-wife and I bought a house in April '07 and unfortunately we got divorced in Sept '07. In our divorce decree it states that we will sell the house and until it sells I am responsible to pay the mortgage and upkeep of the house. The unfortunate situation is that we owe approx $206k and now the house is only worth about $170k - $175k and I can no longer afford the house payments. If I have her sign a quit-claim deed and stop making payments will that in any way keep her credit from being destroyed?
 


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nextwife

Senior Member
No. Ownership has nothing to do with mortgage liability.

Go back to court and address the upside down mortgage.
 
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penelope10

Senior Member
nextwife said:
No. Ownership has nothing to do with mortgage liability.

Go back to court and address the upside down mortgage.
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In other words, if her name's on the mortgage she is equally responsible. The mortgage co was not a party to the divorce and, therefore, no divorce court can absolve her financial responsibility for mortgage payments.

Legally she may be able to go after you if the payments aren't made and her credit is ruined by this.

Follow the previous advice from a Senior Member.

My sympathies, the real estate market has tanked in a lot of places.
 
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mommyof4

Senior Member
I do have to say 'kudos' to you, though for trying to find a solution so that she is not financially damaged, even though your idea is not going to work.
 
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mmckinnon3

Junior Member
So then, if I do stop the payments and both of our credit is damaged what is her recourse? In light of this new information my plan is to go to her and tell her that we have 2 options...to sell the home for less than we owe and split the difference (which neither of us can come up with) or we can damage our credit and do a short sale and leave the decision up to her on which route we take. The 3rd option if she refuses is for me to take her to court and force her to list the house at fair market value and split the difference, so the outcome ends up being the same, but costs more money in court and legal fees.
 
LdiJ

LdiJ

Senior Member
mmckinnon3 said:
So then, if I do stop the payments and both of our credit is damaged what is her recourse? In light of this new information my plan is to go to her and tell her that we have 2 options...to sell the home for less than we owe and split the difference (which neither of us can come up with) or we can damage our credit and do a short sale and leave the decision up to her on which route we take. The 3rd option if she refuses is for me to take her to court and force her to list the house at fair market value and split the difference, so the outcome ends up being the same, but costs more money in court and legal fees.
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Or, you can tighten your belt, downsize your other living expenses, and ride out the market problems.

If you stop the payments she has lots of recourse against you, civilly. You aren't wrong to discuss your options with her, and they are realistic options if there is no way to continue making the mortgage payments, but you should at least explore the option of downsizing your other expenses.

Believe me, the hit to your credit isn't going to make your life any more pleasant than it will make hers. If there is any way to ride things out, you will be better off in the long term.
 
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mmckinnon3

Junior Member
I agree that riding it out would be the best choice, but I've already downsized almost every expense I can. I ride a motorcycle to work so I get 50 mpg's my electricity bill $40-$50/ mo, and I loose a bit of my savings every month to pay my bills. Soon my savings will be gone and I still won't be able to make the payments. As much as my home has decreased in value it's going to take probably around 7 yrs for me to break even on it. If I didn't have my mortgage I'd have about $1000 a month more after paying rent for a new place. So, really...letting my credit go to hell is the most attractive option right now
 
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MFinancier

Member
LdiJ said:
Or, you can tighten your belt, downsize your other living expenses, and ride out the market problems.

If you stop the payments she has lots of recourse against you, civilly. You aren't wrong to discuss your options with her, and they are realistic options if there is no way to continue making the mortgage payments, but you should at least explore the option of downsizing your other expenses.

Believe me, the hit to your credit isn't going to make your life any more pleasant than it will make hers. If there is any way to ride things out, you will be better off in the long term.
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I also might add that don't forget to look at refinancing possibilities and any new government foreclosure assistance. Rates have come down substantially since April of 07. If that and the above won't work...go with "nextwifes" post and address the issue about the mortgage and just how long your on the hook to pay for all this before you can bail before your judge.
 
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nextwife

Senior Member
mmckinnon3 said:
I agree that riding it out would be the best choice, but I've already downsized almost every expense I can. I ride a motorcycle to work so I get 50 mpg's my electricity bill $40-$50/ mo, and I loose a bit of my savings every month to pay my bills. Soon my savings will be gone and I still won't be able to make the payments. As much as my home has decreased in value it's going to take probably around 7 yrs for me to break even on it. If I didn't have my mortgage I'd have about $1000 a month more after paying rent for a new place. So, really...letting my credit go to hell is the most attractive option right now
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Have you considered a roommate? Or renting the house out and living elsewhere?
 
LdiJ

LdiJ

Senior Member
nextwife said:
Have you considered a roommate? Or renting the house out and living elsewhere?
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Both of those are also very good options. Particularly the roommate. I really hate to see someone take a credit hit on a home if there is any other way around it. Even a bankruptcy doesn't do as much damage as a home foreclosure or short sale. It seems like the easy way out when things are really tough, but the next time the person really needs credit for something else, they realize just how much damage they really did to themselves.
 
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