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Quit Claim/ Home Equity loc

Posted on: 15th Jan, 2010 08:39 am
My Ex and I have been divorced for about a year. The house is in both of our names. As well as a Home Equity line of credit. The house has been listed for sale since April. In the divorce agreement, 100% of the money left from the sale of the house goes to me, however it is not selling and we are having difficultly making the payments-especially me. Neither one of us is living in the home at this point, and the price has been dropped so much that there will be very little, if any, money remaining after the sale of the house.
He suggested that I quit claim the house to him so I am not responsible for any money owed after a short-sale.
My question is: Would I still be responsible for any money owed after a short sale? and What about the Home Equity LOC- since that is against the house, would still be responsible for that loan? or would I be able to 'get out of it' since I no longer am connected to the house?
hi gibby,

if you sign the quit claim deed, you will not be the owner of the property anymore. however, if you're one of the borrowers of the loan, then you would still remain liable for the mortgage dues. signing a quit claim deed will not release you from the mortgage liability. your ex will have to refinance the loan in his name in order to release you from the responsibility of the loan.

thanks
Posted on: 15th Jan, 2010 09:24 pm
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