Posted on: 04th Dec, 2007 10:43 am
Hi my girlfriend and I both own a house together with both of us on the mortgage, we are now broken up and having problems making the mortgage. Her uncle states that he wants to help us and has us to sign a quitclaim deed to him and he will take over the payments of the house till it sells. So two questions: 1. Does the obligate him to pay the mortgage? 2. Would we have any rights to the profit made if the house were to sell for a profit?
Further, if you quit claim without the lenders permission and have an acceleration clause in the mortgage then you might find the lender coming after you for the full amount of the mortgage in a short period of time... and since you would no longer be on title, it would be increasingly difficult for you to refinance and pay off the mortgage.
You wouldn't be entitled to any profit if you were to go along with your uncle's plan, so if you do decide to go that way, make sure you have a seperate agreement in writing regarding any potential profit.
You wouldn't be entitled to any profit if you were to go along with your uncle's plan, so if you do decide to go that way, make sure you have a seperate agreement in writing regarding any potential profit.
hi dnrtech,
welcome to this forum.
quitclaim only transfers the property but it does not remove the financial obligations if the property is a mortgaged property. that means if you quitclaim the property to your girlfriend's uncle the deed only transfer the property to him. but still your name will be there on the mortgage and it will be your obligation to pay the mortgage.
so i shall suggest you to ask refinance to remove your name from the mortgage. otherwise you should not quitclaim the property to him.
feel free to ask if you have any further questions.
thanks,
larry
welcome to this forum.
quitclaim only transfers the property but it does not remove the financial obligations if the property is a mortgaged property. that means if you quitclaim the property to your girlfriend's uncle the deed only transfer the property to him. but still your name will be there on the mortgage and it will be your obligation to pay the mortgage.
so i shall suggest you to ask refinance to remove your name from the mortgage. otherwise you should not quitclaim the property to him.
feel free to ask if you have any further questions.
thanks,
larry
What the above posters said is true. I agree with everything said so far. There really is no benefit to quit claim to him unless he finances into his name.
What does the uncle want in return. Does hewant you guys to quit claim off so he is only the owner or does he want just security in knowing what the house sells for upon the sale so he can get what ever payments he has made back from the sale. does he want all the profits from the sale. are there going to be any profits from the sale? If you just quit claim him on and don't remove yourselves then he is part owner and you remain in partial control. every decision from here on out all three of youwould have to agree apon. You and your exgirlfriend would still be solely responsible for the mortgage.
Who lives in the house now? is the relationship still amblicable? is the house currently for sale? do you trust the uncle and the ex girlfriend?
If you don't trust them and she is living in the house and this payment trouble is starting to affect your credit i wouldsimply draw up an agreement with the uncle and ex to have him quit claimed on the property with a refinance of the home with the ex girl friend. If their is equity in the home take a 30% share and have it come from the refinance. only 30% because who knows when the house will sell and what for? He would be doing you a favor and getting a return on his investment. If he wants to continue to help his niece he may then be able to split payments to help her and she could remain in the house and he gets an investment property so to speak.
What ever you do don't quit claim yourself off the deed you loose all rights to the property and stil are liable for the mortgage. If you can shed a little more light on the situation it may help garner some more specific answers. Feel free to respond her or directly.
Who lives in the house now? is the relationship still amblicable? is the house currently for sale? do you trust the uncle and the ex girlfriend?
If you don't trust them and she is living in the house and this payment trouble is starting to affect your credit i wouldsimply draw up an agreement with the uncle and ex to have him quit claimed on the property with a refinance of the home with the ex girl friend. If their is equity in the home take a 30% share and have it come from the refinance. only 30% because who knows when the house will sell and what for? He would be doing you a favor and getting a return on his investment. If he wants to continue to help his niece he may then be able to split payments to help her and she could remain in the house and he gets an investment property so to speak.
What ever you do don't quit claim yourself off the deed you loose all rights to the property and stil are liable for the mortgage. If you can shed a little more light on the situation it may help garner some more specific answers. Feel free to respond her or directly.
