Posted by Craig S - CA on December 03, 2004 at 12:08:46:
I agree with Alexander, however, be aware that by recording the deed you are violating the due on sale clause you probably signed with the lender. It’s not illegal, but they might choose to call the entire balance due and payable immediately. You can bet that your ex will be calling the bank on her attorney’s advice to let them know that she no longer owns the property and wants off the loan. That will dramatically increase the chances of the loan being called. On the other hand… the bank might not do this because there is no equity in this house and they will likely get stuck with a property that they will need to short sell. Are you feeling lucky?
How do I get out of this?!?!?!? - Posted by WaynePa
Posted by WaynePa on October 19, 2004 at 12:04:53:
Okay,
I really need help on this one! I bought a house with a person I WAS in a relationship with and as timing would have itafter 1 week we broke up. We haven’t even paid our first mortgage payment yet.
I was under the understanding that if I got a signed Quit Claim Deed and took that to the mortgage company to show that the person is no longer tied into the house, well everything would be said and done. Well her lawyer and the people at the title company are saying that I have to refinance the house. This is a mortgage with no seasoning and no equity (we got 100% financing) and she only put $500 into the purchase of the house. She is totaly fine with me keeping the house, she doesn’t want her name on the mortgage. Somebody say it isn’t so! Tell me what I have to do to get this over and done with.
Re: How do I get out of this?!?!?!? - Posted by Alexander (FL)
Posted by Alexander (FL) on October 28, 2004 at 14:16:23:
It isn’t so.
IF you want to refinance in your name, then your ex’s name will no linger be responsible for the initial loan by virtue of the refinance.
You don’t HAVE TO do this however. Despite her lawyers claims, she signed a note and personnally guaranteed the mortgage.
She continues to be responsible until the mortgage is paid off regardless of whether she’s in the relationship or, like in your case, not.
Take the Quit Claim Deed and record it. This gives you 100% ownership of the house.
The escrow company that closed your loan is out of this picture and has nothing to do in this deal any longer.
Your are the only person that can remove her from the note by paying off the current note through refinancing, no one else.
Re: How do I get out of this?!?!?!? - Posted by Natalie Smith
Posted by Natalie Smith on October 20, 2004 at 12:11:45:
I’m not an attorney, but I don’t think you HAVE to do anything. You both signed the mortgage and are liable for it, regardless of who lives in it. If you choose to keep paying (which you should to save your credit), she may want to share in the equity you build since she is on the deed with you. If she really wants out of it, she should share in your expense to do the refinance, but you may have to let the title season for 6 months. I hope it works out for you.
Re: How do I get out of this?!?!?!? - Posted by River City
Posted by River City on October 20, 2004 at 07:36:22:
You have to do what they said. You will have to refinance the loan in your name. The only thing a quit claim deed will do is remove one name from the title to the property. It doesn’t remove anyone from responsibility of the Note.
You might contact the lender and see if there is another way. Maybe even speak with the loan officer that you worked with in obtaining the original loan on the home. Who knows? It can’t hurt to try.