Posted on: 20th Apr, 2011 09:09 am
Me and my sister bought the house in 2004, I move out from that house last January 2010 when I got married. Six months ago she had a loan modification with my approval. Now I really need to get out of that loan but what are my options since we cannot refi the house?
hi rosalie_lat ,
welcome to mortgage fit,
since you are not able to refinance, you can keep the situation as it is.only ask your sister to pay for the mortgage and make an agreement with her that after some specified time you will quitclaim the deed to her.
so both the things will be accomplished, you will get free from paying the monthly mortgage whereas your sister is happy because without refinancing the property she has the chance to own the house.
one more proposal is that through the process of novation someone from her family can replace you in the mortgage.instead of you the new person will be added to the mortgage and your sister and new person will continue with paying the mortgage.
feel free to ask any further query if you have....
dipa
welcome to mortgage fit,
since you are not able to refinance, you can keep the situation as it is.only ask your sister to pay for the mortgage and make an agreement with her that after some specified time you will quitclaim the deed to her.
so both the things will be accomplished, you will get free from paying the monthly mortgage whereas your sister is happy because without refinancing the property she has the chance to own the house.
one more proposal is that through the process of novation someone from her family can replace you in the mortgage.instead of you the new person will be added to the mortgage and your sister and new person will continue with paying the mortgage.
feel free to ask any further query if you have....
dipa
Thank you for the answer dipaligopale.
How does the the quitclaim deed works? Is that the same as the release of liability? We were going to apply on the release of liability but we were told that our chances of getting approved is very low because of the recent loan modification. And my sister don't want to keep the house thats why I need to get out from it asap before she foreclose or shortsale the house. My husband and I really would like to buy our own house now.
How does the the quitclaim deed works? Is that the same as the release of liability? We were going to apply on the release of liability but we were told that our chances of getting approved is very low because of the recent loan modification. And my sister don't want to keep the house thats why I need to get out from it asap before she foreclose or shortsale the house. My husband and I really would like to buy our own house now.
Hi rosalie_lat!
Welcome to forums!
A quitclaim deed will help you in transferring the property from one person to another. However, it does not release the grantor from the liability of the mortgage payments. The person to whom you're transferring the property will have to refinance the mortgage in his/her name in order to remove you from the liability of paying the loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
A quitclaim deed will help you in transferring the property from one person to another. However, it does not release the grantor from the liability of the mortgage payments. The person to whom you're transferring the property will have to refinance the mortgage in his/her name in order to remove you from the liability of paying the loan.
Feel free to ask if you've further queries.
Sussane
Hi rosalie-lat,
Welcome back!!
As far as quitclaim deed is concerned you can also go through this link for the further information related to it.
http://www.mortgagefit.com/search/quitclaim-deed.html
If you and your husband wish to buy a new home in coming future then foreclosure of this property will surely hamper your credit, so I will advice you to discuss the situation with your sister.Ask her,whether someone from her family is ready to be on the mortgage,then through the process of novation you can safely get rid of the liability from paying the mortgage.
If your sister forecloses the property it will hamper your credit score by almost 200-250 points,making more difficult to qualify for the new loan you wish to get for the new home purchase.
Feel free to ask any further query if you have....
DIPA
Welcome back!!
As far as quitclaim deed is concerned you can also go through this link for the further information related to it.
http://www.mortgagefit.com/search/quitclaim-deed.html
If you and your husband wish to buy a new home in coming future then foreclosure of this property will surely hamper your credit, so I will advice you to discuss the situation with your sister.Ask her,whether someone from her family is ready to be on the mortgage,then through the process of novation you can safely get rid of the liability from paying the mortgage.
If your sister forecloses the property it will hamper your credit score by almost 200-250 points,making more difficult to qualify for the new loan you wish to get for the new home purchase.
Feel free to ask any further query if you have....
DIPA