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Quit Claim Deed - novation mortgage responsibility

Posted on: 24th Apr, 2009 10:17 pm
we bought the house during the marriage under my husband and my name for ownership as well as the mortgage.
now we are going through the divorce and he is not paying any mortgage and threatening me that if i dont keep the mortgage it will go for foreclose and he would not make any payment at all. not only the mortgage he is not paying for the property taxes. he want to see me suffer.

i asked bank and they told me they don't care who pays for it as long payments are made. when i asked if i can make interest only payments, they told me that if the amount is not sufficient they will not apply the payment.
my x husband is the principal borrower and i am co-borrower.

legally who is responsible for the monthly payment?
can i ask him to sign the quit claim deed and novation and take the whole loan in my name? how do i do that ?
you are both fully responsible for payments. the terms "principal borrower" and "co-borrower" have no relevance in terms of your obligation. that's why the lender doesn't care who makes payments.
taking the whole loan in your name isn't going to make any difference to you, except that it removes your husband from the mix. i don't think it will make you any less aggravated, either.
Posted on: 25th Apr, 2009 05:39 am
hi

generally, the primary borrwer should make the payments, but if he defaults it's the co-borrower who has to make the payments. if you have a good credit and income, you can refinance the mortgage in your name. you can also request the lender to remove him from the loan and put your sole name on the mortgage. but before you take over the mortgage responsibility, make sure you have the title solely in your name.
Posted on: 25th Apr, 2009 05:39 am
not exactly, savior. both borrowers are equally liable for payments. in other words, regardless of who earns the most, who is husband, who is wife, who is significant other, who is partner, and on and on....each person is fully obligated to pay the entire mortgage. how they do it is up to them.
Posted on: 25th Apr, 2009 05:42 am
Thanks all for your responses.
There was domestic violence and restraining order involved.
He does not live here any more, he has moved into our another house he forcefully bought recently on cash, telling me that it would be for rental but he bought it for himself to move in. Now his lawyer is telling me that i shall pay the mortgage and if don't he will let go to default.
We are going through divorce now,

I will have to refinance the house to a lower payment and bank will not only do it when the title is only in my name.
How do i tell him that either pay the mortgage or sign the Quit Claim Deed and NOVATION agreement and i will take the loan on my name.
is there any website where i can download these forms ?
Posted on: 25th Apr, 2009 08:27 am
Hi

You need to refinance the loan in your name for which you need to have the title in your name. You can transfer the title through a quit claim deed which conforms to the laws of the state where the property is located. You can avail such deed foms online. But it's better to get one prepared by a lawyer. But the most important point here is to convince him to sign the deed. You will need to negotiate with him. If there's enough equity in the property, you can also do a cash-out refinance and make him sign the deed in exchange for a certain amount of money. Is there enough equity in the property?
Posted on: 28th Apr, 2009 05:48 am
my parnter is leaving and the mortgage is in his name only, my name on the deed. Am I financially responsible for the mortgage if he defaults, even though my name is not on the loan?
Posted on: 22nd Oct, 2009 12:00 pm
my partner is leaving and I think he will default on the mortgage in his name, my name is on the deed. What is my financial responsiblity???
Posted on: 22nd Oct, 2009 12:02 pm
your responsibility is to pay the mortgage. if yor name is on the loan, then you are obligated to pay the debt. you could always sell the house if he's unwilling to contribute.
Posted on: 22nd Oct, 2009 06:45 pm
My mom signed her property over to my brother because of health reasons, my brother took out a loan and him and my mom were paying for what we thought was a small loan...we recently received a notice of foreclosure and found out how much the loan was for....since the exchange in land/house my parents now live with me...can my brother and myself sign a quit claim and a novation mortgage even though I am in between jobs and in school?
Posted on: 04th Jun, 2010 01:55 pm
Hi lynn,

As the property is in foreclosure, you and your brother will have to bring the mortgage dues current. Once you've done so, you and your brother can ask your mother to transfer the property and then apply for a novation to get the mortgage transferred. However, in most cases, the lender will want you and your brother to refinance the loan.

Thanks
Posted on: 05th Jun, 2010 12:14 am
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