Posted on: 26th Jan, 2011 01:01 pm
my husband & i are in the process of getting a divorce. he has agreed to pay me 1/2 the equity in our house. he is telling me that i have to sign a quit claim deed in order for him to refinance the house to get the cash to pay me. i am concerned that once i sign i will lose all legal right to my 1/2 of the house should he decide not to pay.
What you want to do is to arrange for the quit claim deed to be delivered at the same time as his refinance. If you're working with legal counsel, that ought to be readily arranged between your lawyer and his.
This is common practice in divorce settlements, and lenders are also cognizant of the situation. If he seeks a new loan and advises the lender that the quit claim will take place at closing, then they'll have no problem with doing the loan in that fashion - assuming, of course, that he'll qualify for what he's attempting to do with the lender.
Don't be fearful, but be certain that you have all the legalities ironed out so that you're not delivering full ownership to him without your due compensation.
This is common practice in divorce settlements, and lenders are also cognizant of the situation. If he seeks a new loan and advises the lender that the quit claim will take place at closing, then they'll have no problem with doing the loan in that fashion - assuming, of course, that he'll qualify for what he's attempting to do with the lender.
Don't be fearful, but be certain that you have all the legalities ironed out so that you're not delivering full ownership to him without your due compensation.