Quit Claim Deed and Mortgage Responsibility: Getting Name Off Mortgage

quit claim deed getting name off mortgageQuit claim deed and mortgage responsibility don’t go hand in hand. Getting your name off the mortgage is possible when refinancing.

Q: I did an act of donation on my house to my ex-husband. He is going to give me a fixed payment once he refinances the home. Is there a way to get my name off of the mortgage now since I did give him the property?

A: The short answer is no. The act of donation, which is simply the process of quitclaiming a property from one owner to another, does not change the basic premise that you and your ex-husband signed a promissory note to the lender agreeing to jointly repay a sum of money when you purchased or last refinanced the home.

The lender is not a party to your divorce, is not a party to the act of donation and is not a party if you decide to transfer any or all of your assets to your ex-husband. The lender is a party to the many documents you signed when you took out a loan for that home. You signed a promissory note, mortgage, and a whole bunch of other documents when you got that loan. (We’re guessing that your hand might have grown quite tired from all the signing of those documents.)

But in none of the documents that you signed did any one state that if you sold or got rid of the home, the lender would agree to release you from the debt if the lender was not paid. In general, the only way to get your name of the loan to a home is to have the loan paid off. While in some very remote circumstances, you can request that a lender remove your name in your situation, the lender would ordinarily decline to agree unless the home value is far in excess of the loan amount or the lender has a business relationship with the spouse that retains ownership of the home.

The more likely scenario for your situation is that you obtained your loan through normal channels and that loan is now serviced by a big box lender with a secondary mortgage lender like Fannie Mae or Freddie Mac owning the underlying paper. Dealing with a big box lender or Fannie or Freddie means that you would have little chance of having them remove your name from the loan.

As it seems you’ve transferred your ownership of the home to your ex-husband, you will probably have to wait until he refinances to get your name off the loan. If your divorce decree requires him to refinance within a certain time and he has the means and the ability to refinance the home, and he does not, you might have to go back to court to force him to refinance.

We would have preferred for your ex-spouse to have refinanced the property as the same time you executed a quit claim deed. That way, you would still own the property as collateral for the mortgage.

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3 Responses to Quit Claim Deed and Mortgage Responsibility: Getting Name Off Mortgage

  1. marc says:

    iv got lots of info telling me I shouldn’t have signed the quitclaim deed ….iv got it know…
    what I need know is a solution to my dilemma ….
    its been almost ten years of receiving her bad credit (late payment)
    is there no options
    I cant believe that I am suppose to just wait till (30 years) till she is able to refinance on her own
    were she is perfectly happy with her possessions I an stuck in limbo till she gets her life strait, leaving me unable to get a simple credit card let alone a car or home lone

  2. charlotte says:

    I purchased my home without being married.My partner and I have split up however he is willing to quit claim it over to me and exchange for cash and mutual property !! We have an attorney whom will do the deed abd contract this agreement .I am now worried that the bank may try and make me redo the loan which I will not qualify because I am self employed .. I have an excellent credit score and I pay all my bills before they are due . My ex knows that this mortgage will get paid . Will the bank just leave things the way they are if they are getting the notes ?

  3. Heather Phillips says:

    Would there be any reason for me to sign a quick claim deed. My husband is buying a house just in his name because we had to short sale my house that I bought but he couldn’t afford the payments after I got pregnant twice and stopped working, I think he is trying to screw me over. What do you think?

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