Quit claim question

[MJA89]

What is the name of your state (only U.S. law)? FL/VA

Got divorced in FL (judgment in FL), but have houses in both FL and VA. My X is living in the FL house with our minor child. The decree states that she will remain there until our child is 18, then she is to refinance in her name or sell. Per the decree, I have waived claim to any profit from the sale or buy-out from the refi (it is underwater now). The decree states that she is responsible for all mortgages/liens/debts/taxes.

The VA house has tenants, I am responsible for paying mortgage, collect rent etc. Per the decree we are to sell this summer when the lease is up. She wants to hold onto the house until the market turns. I offered to do a quit claim if she took over the mortgage/property management/taxes and took my name off of the mortgage. There is equity in this house, but not enough to make a profit from sale (closing costs etc) right now. I am willing to give up any claim to equity in exchange for her to refinance/get my name off of the mortgage.

She is willing to take over the VA house, but wants me to do the quit claim on the Fl house in exchange- how is this different from what she has per the decree?

 

[nextwife]

What is the name of your state (only U.S. law)? FL/VA

Got divorced in FL (judgment in FL), but have houses in both FL and VA. My X is living in the FL house with our minor child. The decree states that she will remain there until our child is 18, then she is to refinance in her name or sell. Per the decree, I have waived claim to any profit from the sale or buy-out from the refi (it is underwater now). The decree states that she is responsible for all mortgages/liens/debts/taxes.

The VA house has tenants, I am responsible for paying mortgage, collect rent etc. Per the decree we are to sell this summer when the lease is up. She wants to hold onto the house until the market turns. I offered to do a quit claim if she took over the mortgage/property management/taxes and took my name off of the mortgage. There is equity in this house, but not enough to make a profit from sale (closing costs etc) right now. I am willing to give up any claim to equity in exchange for her to refinance/get my name off of the mortgage.

She is willing to take over the VA house, but wants me to do the quit claim on the Fl house in exchange- how is this different from what she has per the decree?

So you agreed to lock up your credit and borrowing ability until the kids are 18 before she has to refi? Wow.

Personally, I think you are being very short sighted. Real estate WILL recover some day, I don't get why so many people think real estate should be treated as a short term investment when it's really a long term growth product.

Regarding the rental: A quit claim at the refi closing when she takes it over is pretty much the same thing. Unless she hires a management company, I don't see how she can properly manage a property so far away. I own rental, and I won't go more than a county away, if I expect to properly monitor the property. Do NOT give HER a quit claim at all. Have the title company treat this as a purchase and provide it to THEM, with closing instructions to hold the deed, and release it when the refi funds.

 

[mistoffolees]

Do NOT sign a quit claim deed until your name is taken off the mortgage.

The decree says that she has the right to any profits that might occur and she is responsible for any expenses. But what happens if she fails to take care of the expenses and the mortgage company comes after you? If you sign the quit claim deed, your options are limited. If you don't sign the quit claim deed, you have an interest in the house and have more leverage.

 

[FlyingRon]

So you agreed to lock up your credit and borrowing ability until the kids are 18 before she has to refi? Wow.

Such is the commitment of marriage and having kids. While a marriage is easier to get out of than a mortgage, both are intended to be long term commitments.

 

[LdiJ]

If the VA house does not have enough equity to make a profit after closing costs, then it doesn't have enough equity to allow your ex to refi either....unless your ex has significant cash money to bring to the closing table.