Posted on: 24th Jun, 2009 08:44 pm
My girlfriend and I own a home together for the past 2 years having taken out a mortgage on it. I am now in the process of separating from her (moving out) and want to know the right steps. We are in discussion as to her refiancing the home to take advantage of the lower interest rates now, and have her income, along with her grandmother (to co-sign) the loan WITHOUT me of course on the new loan. I am under the assumption that I shouldn't quitdeed the property to her, since that would not take me off of the mortgage loan and I would still be responsible for that. Am I right, that I have to get her to refiance or is there another way that I can more easily remove myself from ownership of the property, and that I am totally clear of all legal/loan obligations. She is willing to take out a new loan/ with her grandmother's help, then all is left is figuring out how much she will pay me for my investments. I am not budging from the home until all of this is taken care of, which as you can imagine makes things rather difficult.
Guest,
If you want to move away from the house you make sure that she refinances on first on her and her grandma's name and then only you sign the quitclaim deed . otherwise you will be in big trouble.
keep in touch........
If you want to move away from the house you make sure that she refinances on first on her and her grandma's name and then only you sign the quitclaim deed . otherwise you will be in big trouble.
keep in touch........
To Guest,
You're right in saying that a quitclaim deed cannot take you off the loan. Therefore, quitclaiming your interest straightaway will not solve the issue. The only way to get off the loan is to do a refinance in your girlfriend's name. Since her grandmother is going to co-sign for her, I don't think she will have difficulty in qualifying for the loan. Once she is set to refinance the property and sign the loan agreement at closing, you can quitclaim your interest in the property to her and move out.
You're right in saying that a quitclaim deed cannot take you off the loan. Therefore, quitclaiming your interest straightaway will not solve the issue. The only way to get off the loan is to do a refinance in your girlfriend's name. Since her grandmother is going to co-sign for her, I don't think she will have difficulty in qualifying for the loan. Once she is set to refinance the property and sign the loan agreement at closing, you can quitclaim your interest in the property to her and move out.
i am glad to hear that what i was thinking so far was right. i have recently been told about something called "novation" and am interested in just how it might be used by myself in this case with my ex girlfriend, her grandmother and myself. question: if the grandmother was willing to, could she through the novation policy replace me on the mortgage with all of the same obligations and have myself removed as long as all of the parties are in agreement, and the mortgage company allows it. might this be a way to take care of my problem or is it better to have my ex girlfriend and her grandmother refiance and then for me to quitdeed as you mentioned? i don't know if novation is even a possiblity as far as a mortgage is concerned, it is just something that i have just been told about and wanted to check before proceeding with the refiancing process for them. again, as you can well imagine life as i know it is less then great, but at least bearable at this point in the home and i would like to expediate my departure date as soon as possible. thanks