Q: My girlfriend and I recently bought a house together. Six months later she decided she wants out.
People have recommended a “quit claim deed” as a solution.
Will this work or is there is a better solution? Does the “quit claim deed” relinquish her of her responsibility for the mortgage? I would greatly appreciate any advice you can give me
A: A quitclaim deed transfers any interest you may have in a property to someone else. The key word in that sentence is “may” I can transfer my interest in the Brooklyn Bridge to you by using a quitclaim deed. But unless I actually own a piece of that bridge, the quitclaim deed is worthless.
In your case, your girlfriend can quit claim her interest in the property to you. However, if she quitclaims the house to you, it does not relieve her of her responsibility to the mortgage — and it will put her in a really difficult position down the line. She will owe on the mortgage (and have her credit tied up with it), but not own any part of the property. She will lose any leverage she has to make sure you make your mortgage payments on time so her credit doesn’t get wrecked.
The question you must ask yourself is this: can you afford to refinance the mortgage in your name only? That is the only way to get her name off of the loan. If not, then she is going to have to live with the consequences of her poor decision to buy this house with you, without thinking through the long-term ramifications of that decision
You should speak to a real estate attorney about what your options are and what is the best way to proceed.