Quick Claim

[Teppo37]

What is the name of your state (only U.S. law)? Arizona
I live in Arizona a community property state,, my wife and I have been separated (Not Legally) for about 4 years, about six months ago I refinanced the house in my name only and she did a quick claim deed to me so she is no longer on the mortgage or deed, does this release her financially and make it my sole and separate property? The reason I ask is she is trying to get a house on her own and I was wondering if they will count that as debt against her, I have been paying the house payment on my own from my own account for a few years,

Thank you and advance....What is the name of your state (only U.S. law)?

 

[mistoffolees]

What is the name of your state (only U.S. law)? Arizona
I live in Arizona a community property state,, my wife and I have been separated (Not Legally) for about 4 years, about six months ago I refinanced the house in my name only and she did a quick claim deed to me so she is no longer on the mortgage or deed, does this release her financially and make it my sole and separate property? The reason I ask is she is trying to get a house on her own and I was wondering if they will count that as debt against her, I have been paying the house payment on my own from my own account for a few years,

Thank you and advance....What is the name of your state (only U.S. law)?

If the mortgage is in your name and she signed a quit claim, the debt will not count against her - it shouldn't affect her ability to get a house.

However, when it comes to divorce, she is still entitled to half of the equity in the home since it's a community property state.

 

[nextwife]

She is NOT on the refinanced loan?

 

[justalayman]

hey those in the know:

doesn't community property also mean community debt?

 

[Teppo37]

She is NOT on the refinanced loan?

No she is not on the refinace.

 

[Teppo37]

hey those in the know:

doesn't community property also mean community debt?

Yes, but thats what I wondering since she got off the mortgage and quick claimed the house to me is she no longer liable to the mortgage.

 

[justalayman]

Yes, but thats what I wondering since she got off the mortgage and quick claimed the house to me is she no longer liable to the mortgage.

If I understand the system correctly, with a community property state, the spouse is always liable for a community debt, even if she is not signatory to the loan contract.

 

[Teppo37]

If the mortgage is in your name and she signed a quit claim, the debt will not count against her - it shouldn't affect her ability to get a house.

However, when it comes to divorce, she is still entitled to half of the equity in the home since it's a community property state.

Im not concerned about the equity, just wanted to make sure it wont affect her ability to get a house as far as counting against her.

 

[Teppo37]

If I understand the system correctly, with a community property state, the spouse is always liable for a community debt, even if she is not signatory to the loan contract.

Well yes that is how it is for the most part, just wasnt sure since she quick claimed it to me if that would make her not financially responsible anymore.

 

[mistoffolees]

hey those in the know:

doesn't community property also mean community debt?

Yes, but that doesn't mean what you think it means.

The only person liable to the bank is the person whose name is on the mortgage. However, the debt and the value of the home will be factored in when settling assets.

If OP takes 1/2 of the equity, then the other person can keep the home and the mortgage and everything will balance out.

 

[FlyingRon]

And the term is QUIT claim not quick.

 

[justalayman]

Yes, but that doesn't mean what you think it means.

The only person liable to the bank is the person whose name is on the mortgage. However, the debt and the value of the home will be factored in when settling assets.

If OP takes 1/2 of the equity, then the other person can keep the home and the mortgage and everything will balance out.

It means exactly what I think.

In a community property state, a community debt is owed by both parties. The creditor can sue the wife for the debt should the OP default.

Due to that possibility (and I honestly do not know if they would or not), the new creditor may figure that in as part of wife's debt load.

as to settling assets; it does not appear there is a divorce in the works.

 

[LdiJ]

What is the name of your state (only U.S. law)? Arizona
I live in Arizona a community property state,, my wife and I have been separated (Not Legally) for about 4 years, about six months ago I refinanced the house in my name only and she did a quick claim deed to me so she is no longer on the mortgage or deed, does this release her financially and make it my sole and separate property? The reason I ask is she is trying to get a house on her own and I was wondering if they will count that as debt against her, I have been paying the house payment on my own from my own account for a few years,

Thank you and advance....What is the name of your state (only U.S. law)?

When you refinanced the house, using the quit claim deed, that should have removed her from both the mortgage and the deed. However, since you only did that 6 months ago there is a chance that it might not have caught up with all three of her credit reports.

 

[Teppo37]

I am pretty sure the bank said that when she applies on her own they will count half of my debt against her, that why I was wondering if half the house will be counted in on that, I know in a community property state that is usually the case, but seeing how she is no longer on the mortgage and she quit claimed her interest to me if in fact they will still count that as her debt?

 

[LdiJ]

It means exactly what I think.

In a community property state, a community debt is owed by both parties. The creditor can sue the wife for the debt should the OP default.

Due to that possibility (and I honestly do not know if they would or not), the new creditor may figure that in as part of wife's debt load.

as to settling assets; it does not appear there is a divorce in the works.

Normally, most community property states are non-recourse for mortgage debt. That means that the bank cannot go after the people personally for the debt, they can only seize the property. Therefore she would not be liable for the loan if he is the only person on the mortgage and deed.

When it comes to other kinds of debt I agree with you, in a community property state a credit can go after the spouse... But usually the creditors do not know about any spouse, particularly if the parties are separated, therefore you don't see that happening really when someone is separated.