Posted on: 16th Nov, 2007 05:00 pm
my husband and i are getting divorced. we have co-ownership of a house with a mortgage on it. i want to keep the house, paying him his half of the equity, leaving just my name on the property and mortgage. we want to avoid refinancing with the fees and possible higher interest rates. can we use a quit claim deed to accomplish deed?
quitclaim can be helpful if you wish to remove your husband's name from the title to property. but to get your name out of the mortgage, either you should refinance or else request the lender if he would allow you for a novation (simple transfer of loan). but you need to have good credit paymet record for that or else how do you prove your creditworthiness.
Hi Rdedge,
Welcome to this forum.
If your husband signs a quitclaim deed, then you will be the sole owner of the property. Quitclaim helps you to transfer the property but that does not transfer the mortgage. So your husband's name will be there on the loan even after the quitclaim. You have said that you will pay half of the equity to him but in that case also his obligations will not be removed from the mortgage. So you should do refinance or novation to remove your husband's name from the mortgage.
"We want to avoid refinancing with the fees and possible higher interest rates."
Why are you thinking that you have to pay more interest rate if you refinance. If you shop a bit you can surely find an affordable interest rate. This community has more that 500 registered lenders. Hope someone of them may surely help you.
Feel free to ask if you have anymore questions.
Thanks,
Larry
Welcome to this forum.
If your husband signs a quitclaim deed, then you will be the sole owner of the property. Quitclaim helps you to transfer the property but that does not transfer the mortgage. So your husband's name will be there on the loan even after the quitclaim. You have said that you will pay half of the equity to him but in that case also his obligations will not be removed from the mortgage. So you should do refinance or novation to remove your husband's name from the mortgage.
"We want to avoid refinancing with the fees and possible higher interest rates."
Why are you thinking that you have to pay more interest rate if you refinance. If you shop a bit you can surely find an affordable interest rate. This community has more that 500 registered lenders. Hope someone of them may surely help you.
Feel free to ask if you have anymore questions.
Thanks,
Larry
welcome rdedge
the quitclaim will only remove your husband from the deed but he will still be on the mortgage. the novation would remove him from the current mortgage. if you need to pay him for his portion of the equity, a refinance or second mortgage might be necessary to obtain the money needed.
larry brings up a great option - contact one of the lenders on the forum (or your current mortgage professional) and have them present you with a few financing option.
good luck to you during this trying time.
the quitclaim will only remove your husband from the deed but he will still be on the mortgage. the novation would remove him from the current mortgage. if you need to pay him for his portion of the equity, a refinance or second mortgage might be necessary to obtain the money needed.
larry brings up a great option - contact one of the lenders on the forum (or your current mortgage professional) and have them present you with a few financing option.
good luck to you during this trying time.
