Posted on: 08th Feb, 2009 08:57 am
ig quitclaiming someone removes them from deed only what claims or responsibilites does one retain b...my husband purchased a home with his parents as co-signers, my credit wouldn't fly. all 4 of us are on the title. my husband & in-laws on the loan. my husband just refinanced and was able to obtain the loan in his name only. we can quitclaim his parents from the deed but from what i am reading they will remain on title. what then is their legal claims or responsibilities and the importance of doing a novation?
Hi lillystouch,
What I understand from the facts presented by you in the post is, all four of you are on the title and only three of you i.e. your husband and your in-laws are on the loan. You want to remove your in-laws from title through quitclaim, but you're not sure whether that will also remove them from the loan. Right?
Well, if this be the case, you can surely remove them from title through a quitclaim deed. However that will not clear them off their debt. So, what you require is Novation, a process through which one transfers one's debt or financial obligations to another person. Thus, a debtor, with the consent of the creditor, transfers his/her debt to another person, who now becomes the debtor, and becomes responsible for the payment of the debt.
What I understand from the facts presented by you in the post is, all four of you are on the title and only three of you i.e. your husband and your in-laws are on the loan. You want to remove your in-laws from title through quitclaim, but you're not sure whether that will also remove them from the loan. Right?
Well, if this be the case, you can surely remove them from title through a quitclaim deed. However that will not clear them off their debt. So, what you require is Novation, a process through which one transfers one's debt or financial obligations to another person. Thus, a debtor, with the consent of the creditor, transfers his/her debt to another person, who now becomes the debtor, and becomes responsible for the payment of the debt.