Posted on: 08th Jun, 2009 12:37 pm
hi,
my x wife has decided to give me the house so i can take over the mortgage. i called my mortgage company and they say i have to do a "release of liability" which cost around $1.200.00. but my friends and family say all i need is a quit claim deed signed.
does anyone know? both of our names are still on the mortgage as well.
thanks
my x wife has decided to give me the house so i can take over the mortgage. i called my mortgage company and they say i have to do a "release of liability" which cost around $1.200.00. but my friends and family say all i need is a quit claim deed signed.
does anyone know? both of our names are still on the mortgage as well.
thanks
the quit claim simply changes who is referenced on the deed and have nothing to do with the mortgage. i would be surprised to find that a lender would agree to remove someone from the mortgage without reviewing the remaining borrowers' ability to make the payments. typically you would have to refinance.
Well...I bought thouse based on my income and credit etc.....she wasnt working...in North Carolina they require you to put your spouse on the mortgage regardless.....in any case it looks like we have to do a "Release of Liability". Is this the same thing as refinancing?
Hi peclarkjr,
Your ex-wife can use a quitclaim deed to transfer the property to you but then you'll have to refinance the mortgage in your name in order to release her from the liability of paying the mortgage. As far as I know release of liability is an agreement by a lender which terminates the personal obligation of one mortgagor to pay the debt. This is mainly done when another mortgagor has agreed to assume the liability. I would suggest you to contact your lender and check out what he exactly means by "Release of Liability".
Thanks
Your ex-wife can use a quitclaim deed to transfer the property to you but then you'll have to refinance the mortgage in your name in order to release her from the liability of paying the mortgage. As far as I know release of liability is an agreement by a lender which terminates the personal obligation of one mortgagor to pay the debt. This is mainly done when another mortgagor has agreed to assume the liability. I would suggest you to contact your lender and check out what he exactly means by "Release of Liability".
Thanks