Posted on: 03rd Feb, 2010 08:52 am
In a separation with pending divorce situation, when a quitclaim or interspousal transfer is signed by the grantor,
1. Will the grantor remain responsible for the mortgage payments in any way?
2. Will the mortgage company require that grantee obtain financing approval or call the entire note due?
3. Is refinancing mandatory for the grantee?
4. Will either document transfer all rights and responsibility of home/mortgage to the grantee until grantee decides to sell?
1. Will the grantor remain responsible for the mortgage payments in any way?
2. Will the mortgage company require that grantee obtain financing approval or call the entire note due?
3. Is refinancing mandatory for the grantee?
4. Will either document transfer all rights and responsibility of home/mortgage to the grantee until grantee decides to sell?
if the grantor has signed an inter-spousal transfer deed, he/she will not remain as the owner of the property. however, unless the other person refinances the loan, the grantor would be responsible to pay it off. if the grantee wants to retain the property, he/she will either have to refinance the loan in his/her name or the lender may call the loan due. if the grantee wants to be the sole owner of the mortgage, then refinancing is mandatory. with the signing of a quit claim deed or interspousal deed, the grantee will own the property solely.
of course, if the grantee continues to make payments as agreed upon in the mortgage note, the lender in this case may never open its eyes to discover that there's been a change in title. that may result in nothing else of substance changing - grantee pays until selling or paying off the loan, whichever comes first. sometimes it just happens that way.
