Refinance vs Quitclaim Deed and Loan Assumption

[GiselleDean]

I jointly own a property with me ex. I have decided to give him full ownership of the property as long as I can be completely removed from the mortgage freeing me of all legal and financial obligations. My only request is that he refinance but he wants to do a quitclaim deed and loan assumption. My understanding is that a quitclaim deed will give up my rights to the property but not free me from mortgage responsibility. The house is fairly new and has little to no equity. Can someone explain/adivse?

 

[quincy]

I jointly own a property with me ex. I have decided to give him full ownership of the property as long as I can be completely removed from the mortgage freeing me of all legal and financial obligations. My only request is that he refinance but he wants to do a quitclaim deed and loan assumption. My understanding is that a quitclaim deed will give up my rights to the property but not free me from mortgage responsibility. The house is fairly new and has little to no equity. Can someone explain/adivse?

What is the name of your state?

 

[GiselleDean]

The property is in Texas.

 

[GiselleDean]

What is the name of your state?

Texas

 

[quincy]

Texas

Thank you for providing your state name..

A quit claim deed will not relieve you of your mortgage obligations. Your ex should refinance the mortgage in his name only before you sign over your interests in the property.

 

[HRZ]

Agree with above , do NOT deed over your interest until the refinance in his name only is locked into place at the same time or other step which clearly legally removes you from debt responsibility .

THese posts abound with sad tales of exs who signed over deed but bungled getting off the debt .

PS He might not be willing or able to refinance ...smile and hold your ground.

 

[LdiJ]

I jointly own a property with me ex. I have decided to give him full ownership of the property as long as I can be completely removed from the mortgage freeing me of all legal and financial obligations. My only request is that he refinance but he wants to do a quitclaim deed and loan assumption. My understanding is that a quitclaim deed will give up my rights to the property but not free me from mortgage responsibility. The house is fairly new and has little to no equity. Can someone explain/adivse?

There is no way that the bank is going to let you off the hook for the mortgage unless its refinanced. The bank has absolutely no incentive to do anything but keep you on the loan.

Do not give him a quit claim deed until or unless its at the closing table for a refinance. The last thing you want is to be stuck on the mortgage for a home you have no claim to at all.

 

[Zigner]

To be clear, such a document (a quick claim) is using filed as part of the escrow process. There will be a document (or documents) to sign that the escrow company sends with the closing package.

 

[justalayman]

To be clear, such a document (a quick claim) is using filed as part of the escrow process. There will be a document (or documents) to sign that the escrow company sends with the closing package.

Ahem,,

Quit claim

Or

Quitclaim

 

[Zigner]

Ahem,,

Quit claim

Or

Quitclaim

I REALLY don't know why "quick claim" poured out of my fingers...

 

[quincy]

Giselle, does your ex actually qualify for a mortgage on his income alone?

 

[GiselleDean]

The last time I asked, he said his application was denied and he did not qualify because his debt to equity ratio is too high. I don't know how honest he is about his financial situation. At one point he stated he would not be willing to refinance until the house was leased...essentially keeping me hostage for half the mortgage until the lease would cover the mortgage completely.

 

[GiselleDean]

Giselle, does your ex actually qualify for a mortgage on his income alone?

The last time I asked, he said his application was denied and he did not qualify because his debt to equity ratio is too high. I don't know how honest he is about his financial situation. At one point he stated he would not be willing to refinance until the house was leased...essentially keeping me hostage for half the mortgage until the lease would cover the mortgage completely.

 

[Zigner]

If he cannot refi, then you can't force a refi. You will be stuck with this until such time as he is able to refi.

 

[LdiJ]

If he cannot refi, then you can't force a refi. You will be stuck with this until such time as he is able to refi.

Or, you somehow force a partition sale. However, there are costs associated with that.