We live in a "park" in Oregon and do not own the land, we rent it and most are closing as land prices have skyrocketed. There is no equity in the home as banks will not loan on it so it is impossible to sell, costs $10k to move and set up on property that I do not have the $$ to spend on. If I had to I would let it go back to the bank but would rather just give it to him as it is not worth anything anyway. Homes sold for $125-$150 new and now maybe $40 if one gets lucky to sell. My house is about 10 years old. Most people are letting them go back to the bank. But I heard the laws have changed with regard to that. I would rather just sign a quit claim deed IF it will absolve me of the debt. Was a bad investment obviously. My almost ex is 70 years old and if he dies would I be responsible for the debt? I am 50+ and dont want to have debt following me around the rest of my life. Is this possible for me?
2006-10-29 07:51:06 · 7 answers · asked by fire_crakker 3 in Business & Finance ➔ Renting & Real Estate
A Quit Claim deed will sign away your equity (interest) in the property but will not absolve you of the debt. A quit claim will mean that you are no longer part owner of the property but you still owe the bank (lender) for the loan.
If he says he will make the payments then why not let him and just get a life insurance policy on him in case he does pass away so that you can pay it off and then do whatever you want with it.
Or if he doesn't want it either why not get him to Quit Claim it to you so that you can rent it out for a while then try and sell it later.
2006-10-29 09:42:11 · answer #1 · answered by bluzmelody 2 · 0⤊ 0⤋
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2016-09-09 20:01:03 · answer #2 · answered by ? 3 · 0⤊ 0⤋
If you sign a quit claim, that leaves all the financial responsibility of the home on him. Especially if you are not living in it. You DO NOT want to let it go back to the bank! Lol. Save your credit hon. Hell, it wouldn't hurt to go ahead a do the quit claim before the divorce is finalized. One less thing to worry about in my opinion. When in doubt though, discuss the options with your lawyer.
*Edit*
And I should have elaborated, if your name is on the loan to the house, it will not absolve you of the debt. I apologize. I was in a similar situation where my ex's name was on the title to the property but he wasn't financially responsible for the loan. And boy did he want to be a pain about that. If you name is on the loan, talk to the lawyer before quit claiming and have a portion of that added in the decree that he is financially responsible and that you will not expect anything from the property. Also, you could also contact the company with the loan and see what it will take to remove you from the financial liability.
2006-10-29 13:20:20 · answer #3 · answered by LpYrBby 3 · 0⤊ 0⤋
If selling the home is not an option, have him refinance the loan in HIS name only. This will relieve you of any financial obligation to the loan. Signing a Quitclaim Deed DOES NOT relieve you of any financial obligation - all it does is sign over your interest in the property to him, and you would still be financially responsible for the loan. It is best to either sell, or have him refinance the loan in his name only, that way you have no financial obligation to the loan. My present wife had a similar situation with her ex-husband. They owned a home together. When they divorced, she tried to get her ex to either sell the home, or refinance the loan in his name only. He refused to do either. The home went into foreclosure, and now she has a record of that foreclosure on her credit report. Try and avoid this if at all possible - it really screws up your credit score! Best of luck to you.
2006-10-29 08:11:57 · answer #4 · answered by BRIAN W 3 · 0⤊ 0⤋
You want to be sure the divorce decree takes care of it.
It should state "husband gets the trailer and is solely responsible for the debt". Mail the lender a copy that is certified as a true and correct copy of the original (your lawyer can do that) and ask them to remove you from it. That should be all you need to do.
2006-10-29 07:57:25 · answer #5 · answered by open4one 7 · 0⤊ 0⤋
He needs to re-fi into his name only, or sell the property. Divorce court can order you and your ex around - they cannot tell your lender that they have to change the terms of your loan. If he keeps the property and it gets foreclosed, you have a foreclosure on your credit.
2006-10-29 08:43:14 · answer #6 · answered by teran_realtor 7 · 0⤊ 0⤋
You will have to address it in the divorce settlement.
You may be smart to just let him take ownership.
2006-10-29 08:00:42 · answer #7 · answered by kate 7 · 0⤊ 0⤋