Posted on: 06th Jun, 2008 09:31 pm
I recently got married and I am trying to sort out my wife's past house issues. I am hoping this forum can help me figure out what to do. Sorry for the long post but I am trying to be detailed in hopes of the best advice possible.
My wife is listed as an owner with her friend on the title of a house. Originally they were both on the title and mortgage, however 2 years ago he redid the mortgage to take her name off. At the time the thought was that she would be leaving and her friend wanted to make sure any gains from her contributions to the house would still go to her when he sold it at a later date. Now, the prices have plunged and it is not worth more than what is owed and we simply want to get her name off the title and hand it all over to her friend (who agreed to this as well). We just want to end any liability and any complications that could arise surrounding the property by signing the rest of the house over to her friend.
On the surface it appears simple, just sign a quit claim and be done. However, I have seen multiple posts talking about taxes and I am worried we are missing something. Are we going to have to pay some enormous amount just to cut any ties to this property? What should we be doing in this scenario?
My wife is listed as an owner with her friend on the title of a house. Originally they were both on the title and mortgage, however 2 years ago he redid the mortgage to take her name off. At the time the thought was that she would be leaving and her friend wanted to make sure any gains from her contributions to the house would still go to her when he sold it at a later date. Now, the prices have plunged and it is not worth more than what is owed and we simply want to get her name off the title and hand it all over to her friend (who agreed to this as well). We just want to end any liability and any complications that could arise surrounding the property by signing the rest of the house over to her friend.
On the surface it appears simple, just sign a quit claim and be done. However, I have seen multiple posts talking about taxes and I am worried we are missing something. Are we going to have to pay some enormous amount just to cut any ties to this property? What should we be doing in this scenario?
Hi Wallace.
Welcome to the forum.
As it is a mortgaged property you may need to take confirmation from the lender before quitclaiming the property to your wife's friend. BTW your wife's friend has refinanced the mortgage on his name only .... right? So talk with him and see if he is ready to accept the quitclaim deed. As he has refinanced the mortgage on his name, the lender will come after him first and then he may come after your wife.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
As it is a mortgaged property you may need to take confirmation from the lender before quitclaiming the property to your wife's friend. BTW your wife's friend has refinanced the mortgage on his name only .... right? So talk with him and see if he is ready to accept the quitclaim deed. As he has refinanced the mortgage on his name, the lender will come after him first and then he may come after your wife.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Hey Larry, thanks for the response.
The mortgage is indeed only in his name, not my wife's.
1) When you say to see if he is ready to accept the quitclaim deed, what do you mean? What is there to get ready for?
2) When you are referring to the mortgage company coming after him and then my wife, that would only apply if she didn't get off the title by quit claiming right? That is one of the reasons we want to get her off the title right away because we don't want anything out of our control hurting us.
The mortgage is indeed only in his name, not my wife's.
1) When you say to see if he is ready to accept the quitclaim deed, what do you mean? What is there to get ready for?
2) When you are referring to the mortgage company coming after him and then my wife, that would only apply if she didn't get off the title by quit claiming right? That is one of the reasons we want to get her off the title right away because we don't want anything out of our control hurting us.
Quitclaim the property to the ex-boyfriend. This will remove any interest your wife has on the property.
Since the ex-boyfriend refinanced alone, your wife should not be liable for that mortgage apart from her property interest.
I don't see any tax issues, except maybe the capital loss she could take for losing money on the house.
Since the ex-boyfriend refinanced alone, your wife should not be liable for that mortgage apart from her property interest.
I don't see any tax issues, except maybe the capital loss she could take for losing money on the house.