Posted on: 09th Jul, 2009 10:03 pm
my 2nd husband and i are going to divorce and rather than stay in the house we purchased with my credit and payed for with our income, i opted to move out of the house...knowing that the $1,500.00 mortgage would be to steep for me to cover as a single mom. we wrote up an agreement stating that i was giving all rights to the house and further would not benefit from any future home exemption credits toward future taxes. he wrote in that within the next five years he would refinance the house out of my name and by that time i would have our jointly owned 2009 camery paid off. he just started talking about having me sign a warrenty deed two weeks ago...insisting actually. this week he admitted that he would only be able to refinance the house out of my name if the interest rate was at 5% or lower five years from now. i think the chances of it being that low in five years are very slim. if i sign that warrenty deed couldn't he effectively keep my name on that loan permanently? this would basically make my debt ratio upside down if the kis=ds and i ever go out for our own property in the future , right?
Hi kimberley
As there is mortgage on the property, you'll not be able to sign a warranty deed to transfer the property. You'll have to use a quitclaim deed. It is true that if you sign a deed and transfer the property to him, he may not refinance in the future. This will not only effect your debt to income ratio but will also ruin your credit if he defaults the loan payments.
Thanks
As there is mortgage on the property, you'll not be able to sign a warranty deed to transfer the property. You'll have to use a quitclaim deed. It is true that if you sign a deed and transfer the property to him, he may not refinance in the future. This will not only effect your debt to income ratio but will also ruin your credit if he defaults the loan payments.
Thanks
In Warranty deed, you should have clear title and property should be free of liens and have the right to transfer/sell it to the grantee/buyer. Therefore you can't sign a warranty deed.