I purchase a home with my partner less than a year. There is a 3 year prepay penalty on the home. If my name was to be removed from the Deed, am I still financially responsible for the for the home? The prepay penalty would be about 13K, so we are seeking the best option here. Any suggestions?
thank you,
In a serious pickle
2006-11-16 09:05:48 · 6 answers · asked by Osman P 1 in Business & Finance ➔ Renting & Real Estate
A quit claim deed does not remove any sort of financial obligations. All that it does is state that you are giving up your right to make a "claim" against the property. If you were on the Note and the Mortgage/Deed of Trust, you are still responsible for that payment. As someone else already stated, make sure to get your name off of any utilities as well.
Unfortunately, there isn't a quick fix to remove your name from the Mortgage/Deed of Trust. There are a few ways to go about it. As someone suggested, you can go to court to be absolved. Your partner can refinance the home on his/her own. Or (if the lender is willing) your partner could do what is called a "simple assumption". Basically, that means that the terms of the note stay the same, but your partner assumes sole responsibility. That will totally depend on your lender. Good luck, I hope this works out for you.
2006-11-16 13:29:48 · answer #1 · answered by Sithein 3 · 0⤊ 0⤋
You are not still financially responsible for the daily expenses of the home (gas, water, trash collection, phone, cable) and should ensure that your name is no longer attached to those bills.
As others have said here, if you signed the mortgage or deed of trust document that is of record at the county recorders' office, then you are financially liable for that voluntary debt contract that you entered into. The lender (bank) will hold you responsible for that equally, until and unless the loan is paid off, which will likely involve your ex-partner getting a new loan in his/her name only and paying off the old one.
The only other possilbe way out of the loan, short of extreme circumstances, would be for you to acquire a court order absolving you of such a liability. This would involve bankruptcy or an very unusual civil lawsuit that you would not be likely to prevail in.
2006-11-16 11:35:49 · answer #2 · answered by William P 3 · 1⤊ 0⤋
For you to get your name off the loan, there are only two options. Your partner re finances the house into their name only, or else you sell the house. With the prepayment penalty, I can understand why neither of these is appealing right now.
The lender won't let you off the note any other way. They have a second person from whom to collect the payment if the first cannot or does not pay. There's no reason for them to just "let you out".
Two years from now, your ex needs to re-fi or sell at that point. Until then, pray that the payments get made, and stay on good terms and in touch. Better to help out financially if needed than allow your credit to be messed up.
2006-11-16 18:07:02 · answer #3 · answered by teran_realtor 7 · 0⤊ 1⤋
Be sure of your facts and contact the lender directly. Do not sign the quit claim deed until you are off the mortgage! If you are off the mortgage and have no further interest in the property then you can quit claim it to the ex boyfriend. There are two separate issues here. The property is the recourse for the lender to get their money. The quit claim takes your name off the property but it does nothing regarding the loan. You do not want your name on the loan and not on the property.
2016-03-19 09:19:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋
When you say partner are you married? If you are only living together and your name was removed from title you have no financial responsibility. Even if you were on title you have no financial responsiblity. The only way you would be responsible is if you were on the note and the mortgage. If you are on title you have right to ownership but not the debt. That is the beauty of being on title and not on the loan. If you are on the loan though the only way to get out of that is by refinancing.
2006-11-16 09:11:30 · answer #5 · answered by Anonymous · 0⤊ 1⤋
You are if you signed the note and deed of trust. If you are on the loan documents then a Quit Claim Deed isn't going to get you out of it. Your partner would have to refinance is their name only.
2006-11-16 09:14:11 · answer #6 · answered by staceydian 2 · 2⤊ 0⤋
Well, in this case, is your name still on the loan? If so, then yes you are responsible...If not, then if your name is not on the deed you cannot be responsible....Call a lawyer and make you an appointment...Most Lawyers offer a free consultation...Good luck....
2006-11-16 09:09:57 · answer #7 · answered by Anonymous · 0⤊ 0⤋