Posted on: 23rd Nov, 2008 10:30 am
What happens to the person that signs a quick claim deed over and loan goes into default?...My father got a divorce over a 1 1/2 ago and signed this deed. His exwife has since contacted him and is claiming that she will not be able to pay the mortgage. Will he be held responsible for this mortgage even though he signed this deed and has not lived there for this time? She wants him to take over the property, until she can get back on her feet and then she will take it back from him.
Unfortunately, ownership on title, and obligation to the mortgage note are independent of each other. Instead of signing over a quit claim deed, a good divorce attorney should have advised him to have her refinance into her own name. By doing this it would relieve him of ownership and responsibility for the debt. If she can not afford (or qualify) to refinance in her own name, he will be responsible for the note, or they will need to sell the home.
[Link removed as per forum rules. Thanks.]
[Link removed as per forum rules. Thanks.]
Hi jrgrimm!
Welcome to forums!
If your father's name is on the mortgage, then the lender will ask him to pay the dues. Yes, he will be responsible for paying the mortgage dues. Signing a quit claim deed does not mean that he has no obligation towards the loan. He has lost the ownership of the property as he has signed that deed.
Your father can take back the property and start paying the mortgage dues. This will at least save the property from going into foreclosure and will not affect his credit adversely. As far as his ex-wife is concerned, she can try to improve her credit as soon as possible and then take back the property and refinance it. She can follow some simple steps to improve credit. Check out the following link for the same:
http://www.mortgagefit.com/credit-rating/credit-repair.html
Feel free to ask if you have further queries.
Sussane.
Welcome to forums!
If your father's name is on the mortgage, then the lender will ask him to pay the dues. Yes, he will be responsible for paying the mortgage dues. Signing a quit claim deed does not mean that he has no obligation towards the loan. He has lost the ownership of the property as he has signed that deed.
Your father can take back the property and start paying the mortgage dues. This will at least save the property from going into foreclosure and will not affect his credit adversely. As far as his ex-wife is concerned, she can try to improve her credit as soon as possible and then take back the property and refinance it. She can follow some simple steps to improve credit. Check out the following link for the same:
http://www.mortgagefit.com/credit-rating/credit-repair.html
Feel free to ask if you have further queries.
Sussane.