Removing responsibility from a mortgage

[andy177]

Washington state.

I was recently divorced. As part of the agreement my former wife received the family house. Since the divorce was final I have processed a quick claim deed and removed my name from the mortgage ( Citimortgage ), however I now understand that I am still responsible for the loan if my former wife defaults. How can I have my responsibility removed if she is not willing to assume the loan or refinance the house?

Thanks

Andy

 

[seniorjudge]

Washington state.

I was recently divorced. As part of the agreement my former wife received the family house. Since the divorce was final I have processed a quick claim deed and removed my name from the mortgage ( Citimortgage ), however I now understand that I am still responsible for the loan if my former wife defaults. How can I have my responsibility removed if she is not willing to assume the loan or refinance the house?

Thanks

Andy

You did not remove your name on your obligation from the mortgage. The only way you can do that is for her to refinance.

 

[JETX]

I have processed a quick claim deed and removed my name from the mortgage ( Citimortgage ),

Sorry, but the only thing that your quit claim did is to remove your name from the ownership. It has NOTHING to do with your mortgage obligation which remains intact.

however I now understand that I am still responsible for the loan if my former wife defaults.

Yep.

How can I have my responsibility removed if she is not willing to assume the loan or refinance the house?

The ONLY way you can remove your obligation is:
1) For her to sell the property (and pay off the mortgage), or
2) For her to refinance (and pay off the mortgage), or
3) For you to get the written permission of the lender to release you from your obligation (very unlikely).

Your attorney (or whoever drew up or agreed to the family order) failed in providing you with the protection you needed.

 

[seagoing]

You might contact the lending company and inform them of the change .This may cause them to call the mortgage and require your ex.to refinance in her name only. The lender is the only authoriy that can remove a name from the mortgage.As you now know,a quit claim does not.

 

[JETX]

You might contact the lending company and inform them of the change .This may cause them to call the mortgage and require your ex.to refinance in her name only. The lender is the only authoriy that can remove a name from the mortgage.As you now know,a quit claim does not.

ROTFLMAO!!! Are you really that stupid??
The mortgage company has absolutely NO reason to 'call the mortgage'... nor do we even know if there is a 'call clause' in the mortgage papers. And even if there is one.... it won't force the ex to do anything.
You really need to KNOW and UNDERSTAND what a 'call clause' is before you try giving valid and accurate advice to anyone.

"A due-on-sale clause is a clause found in some mortgages or deeds of trust giving the mortgagee or beneficiary the right to declare an acceleration of the mortgage debt if the property is sold subject to the mortgage without the mortgagee's written consent. The clause is also called an alienation clause, call clause, or a right to sell clause.

Provisions closely related to the due-on-sale clause are the due-on-encumbrance clause, which authorizes the mortgagee to accelerate the debt if the mortgagor further encumbers the mortgaged real estate, and the increased-interest-on-transfer clause, which enables the mortgagee to use a transfer by the mortgagor as the basis for increasing the interest yield on the mortgage."

 

[combro]

Is the divorce Finalized? If not just put a clause in the agreement that she must refinance or sell the house to satisfy the lien and remove you from any further obligation. Plus don't give up your fair share of the equity built up in the house, she could be walking away with more than you know. Until this is done you both have a legal stake in this property no matter what the court papers say.

 

[andy177]

By 'finalized' I assume you mean signed by the judge. The divorce was filed in October 2005 and the judge signed it off on January 11th 2006.

 

[JETX]

By 'finalized' I assume you mean signed by the judge. The divorce was filed in October 2005 and the judge signed it off on January 11th 2006.

Yep, anyone with ANY legal knowledge or education understood what you meant in your original post where you said "Since the divorce was final.....".

 

[Lisabyday]

Is the divorce Finalized? If not just put a clause in the agreement that she must refinance or sell the house to satisfy the lien and remove you from any further obligation. Plus don't give up your fair share of the equity built up in the house, she could be walking away with more than you know. Until this is done you both have a legal stake in this property no matter what the court papers say.

Although this is a moot point, I have to ask the question, is there such a clause? As to giving up his fair share of any equity, he has already given that up when he signed the quit claim deed. At least that is my understanding when I read the earlier posts. I could be wrong.