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Lender requires spouse to sign QCD

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Auntie40

Junior Member
What is the name of your state? Washington

A lien showed up on title and now the lender doesn't want my spouse on the paper and is requiring a quit claim deed. I've heard that I can quit claim deed thier interest back by simply filing a QCD of 50% interest after the closing. Is this true and legal?
 


seniorjudge

Senior Member
It is true.

However, the mortgage/deed of trust from the lender may have a clause that says if you transfer the land, then it triggers a due on sale clause and then (if you execute a deed after you borrow money) the whole amount will be due and payable immediately. If it is not paid, then you are in default and they can foreclose.

It is best to discuss this with the lender before you sign anything.

Also, a QCD to you from your spouse will not release the lien. So I can't figure out why the lender thinks this will help.

Oh, well. Another example of the golden rule: He who has the gold makes the rules.
 

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