Based on the following sources, the only safe approach for you is to
have your ex-girlfriend refinance so that the mortgage is solely in
her name before you sign a quit claim deed. The mortgage company will
not recognize a quit claim deed, making you liable for the mortgage
payments if the house has not been refinanced in her name only. As a
result, this will not only affect your ability to get a mortgage in
the future because you already have a mortgage, but also you will
remain liable for the mortgage payments if your ex-girlfriend does not
make them.
I would not rely upon the statements of a loan broker and would
consult a qualified real estate attorney in this situation. In
general, she could not transfer your responsibility for the mortgage
to her family unless the mortgage was assumable, "...but then they
will be subject to qualification. Most loans these days are not
assumable unless it's an FHA or some ARM's. " "Quit claim deed to son
(implications) " Do It Yourself.com (June 30, 2005)
http://forum.doityourself.com/showthread.php?p=823568#post823568post823568
Sincerely,
Wonko
Sources:
"The only way to get you off the mortgage is for your ex-husband to
refinance it into his name. The mortgage company is not bound by your
quit claim deed or any agreements made during your divorce."
"BIG problem-divorced but x's mortgage still has my name on financing
in WI" Labor Law Talk (October 31, 2005)
http://www.laborlawtalk.com/showthread.php?p=432134#post432134post432134
"A Quit Claim Deed will not release a name from a mortgage. Title, not mortgage."
"Finance" by Steve Taylor, The Kansas City Star (November 11, 2005)
http://www.kansascity.com/mld/kansascity/classifieds/real_estate/financing/ask_expert_front.html?forumId=571&mode=display&action=&type=list&pageNo=5
"my ex and i bought our house together, both names on mortgage and on
deed.....he had to sign a quit claim deed so that he had no "say" as
to what happened to the property. he has no legal say about what i do
in the house.
but his name is still on the mortgage, so working on refinancing that
to get him off of it."
"Quit-Claim Deed" http://www.ojar.com/view_10401.htm
"I just went through this. We were both on the mortgage as well as the
deed. Both the mortgage and the deed need to be addressed. I had to
refinance (not a completely bad thing, but not good either) to have
the loan in my name only. And then the new deed was made in my name
only at the same time.
I suppose that he/she could quit claim the deed alone, but I would not
expect anyone wanting to do that unless they are also clear of fiscal
obligations (hence the new mortgage)."
"Quit-Claim Deed?" http://www.ojar.com/view_3813.htm
"Signing a Quit Claim Deed gives up ownership of your home and
associated rights and responsibilities. You should be aware that con
artists posing as legitimate companies may offer to take over your
mortgage. They often agree to charge you rent, leaving you free of
mortgage payments. But the scam is that the mortgage is not
transferred, leaving you with high rent payments on top of the
mortgage you already owe."
"Mortgages/Quit Claims Deeds" Denver District Attorney (2001)
http://www.denverda.org/html_website/denver_da/aa%20New%20ECU%20pages/quit%20claim%20deeds.html
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