A couple who is not married bought a house togther, broke up a over a year ago. One wants to transfer all resposablity of title and motgage to the the other owner who has been living there with out the other party for over a year. This person just wants out of house with no buy out. How would one do this?
2007-08-28 11:53:52 · 3 answers · asked by christine d 1 in Business & Finance ➔ Renting & Real Estate
The person who wants to keep the house would need to get it financed in their own name. The person who is giving up their equity would sign a quit claim deed once they are no longer on the mortgage. Signing a quit claim would mean no rights but all the responsibility for the debt so never sign away the rights first.
2007-08-28 12:08:46 · answer #1 · answered by shipwreck 7 · 0⤊ 1⤋
Unless the mortgage company will allow the mortgage to be completely assumed by the owner living in the property, then both people will remain liable for the debt until it is paid in full. Whether title (the deed) is transferred is irrelevant. Both parties will remain responsible for payments.
If the owner is Paris Hilton or someone else who has more money than God, this just might happen. Otherwise, why would a lender allow a person with personal responsibility for the loan to be released? Every person who is responsible is one more person to collect from in case of a default.
2007-08-28 14:26:36 · answer #2 · answered by mcmufin 6 · 0⤊ 0⤋
FYI, title companies in Texas (at least in central Texas) will not accept quit claims. If they're in Texas, they'd probably want to use a special warranty deed but that that doesn't resolve the issue of liability for the loan. Hard lesson learned indeed.
2007-08-28 17:13:29 · answer #3 · answered by liveinaustin 3 · 0⤊ 0⤋