Posted on: 06th Feb, 2009 09:07 pm
My husband is in the military and we own a home in CT. He has been transferred to WA state. Unfortunately the house has not sold due to the fact that we can't lower the price anymore to meet the out of pocket costs with the drop in property values. My husband is afraid to file short sell or died in lieu because it will drop his credit score which can affect his security clearance. Can he quit claim the property to me and then can I file one of these without it affecting him? What is a quit claim and what is the best option to help us be reunited? We have a credit score in the 800's and the loan is secured by VA. Will we lose are benefits and our certificate. Help?
hi militarywife,
a quitclaim deed simply transfers any interest you may have in property to some other individual. it doesn't transfer the loan obligation. so, even if your husband quitclaims the property and you do a short sale or deed in lieu, his credit will be affected because the mortgage remains in his name. the only way to remove his name from the mortgage is to refinance it in your name. however, once you refinance with the same lender, he won't easily agree to allow short sale or deed in lieu right after the refinance.
since your husband has been transferred to wa, you'll have to leave the home in ct. there are 2 things you can do.
1. offer the property on rent to own contract, wherein the tenant would buy the property after a few years as per the contract you make him sign on. till the house is sold, you can make payments using the rental income (of course you need to see if it covers your monthly payment)
2. negotiate with the lender to find out if he'll accept a deed in lieu. of course it will affect your husband's credit but there' no other option left out in this situation.
thanks
a quitclaim deed simply transfers any interest you may have in property to some other individual. it doesn't transfer the loan obligation. so, even if your husband quitclaims the property and you do a short sale or deed in lieu, his credit will be affected because the mortgage remains in his name. the only way to remove his name from the mortgage is to refinance it in your name. however, once you refinance with the same lender, he won't easily agree to allow short sale or deed in lieu right after the refinance.
since your husband has been transferred to wa, you'll have to leave the home in ct. there are 2 things you can do.
1. offer the property on rent to own contract, wherein the tenant would buy the property after a few years as per the contract you make him sign on. till the house is sold, you can make payments using the rental income (of course you need to see if it covers your monthly payment)
2. negotiate with the lender to find out if he'll accept a deed in lieu. of course it will affect your husband's credit but there' no other option left out in this situation.
thanks