Divorce -- A Quit Claim Does Not Take Your Name off the Mortgage ...Only Ownership

May 24, 2012 - PRLog -- It's a common misconception that if "I gave a quit claim deed her/him the house" you are done with the responsibility for the loan.

If you are signed on the loan, the lender will hold you responsible for the payments whether you have an ownership interest or not. "Giving the house" is often referred to as a "quitclaim". In a quitclaim deed, you are resigning from ownership of the house, but it doesn't take you off the loan. It is sometimes erroneously called a quick claim deed.

The lender wants to keep everyone on the hook for the loan payments

The lender got you and your spouse to personally guarantee the payments, and they don't care if you're divorcing. All the future performance on that loan will follow you until that loan is paid off. The house either needs to get sold or the other spouse needs to refinance the loan into his/her name.

Your credit will continue to be impacted if the "in the house spouse" misses payments or if the house goes into foreclosure.

Sever ALL bonds to the Home Loan!

Be extremely cautious of divorce agreements that leave you on the loan, especially if the payment is realistically too high for either party to handle on their own.

If there is more owed on the house than it's worth, you should consider a Short Sale. In a short sale, the lender agrees to let the house sell for an amount SHORT of the payoff. In an ideal short sale, the lender forgives the deficiency and you never have to pay it back. It varies from case to case.

Getting rid of marital debt is more important than keeping the marital home

Please have a down and dirty discussion with your divorce attorney about liquidating the debt on the marital home. Do you really want to be dependent for many years on your ex's ability and willingness to pay on the loan?

See Cindy's Thoughts on Their Short Sale During the Divorce and How She was Able to Buy a Home of Her Own: http://youtu.be/LbThaz_ijN8



Please call a Real Estate Associate Broker like Rick Giese who specializes in helping couples who are divorcing and Short Sales. You need a realistic assessment of the value of the house in today's current market. I have seen too many cases where the spouse got stuck with an unsellable house even though it appraised for much higher than what it can actually sell for. After months or years of trying to sell the house for "appraised value" the spouse figured out they're stuck and need a way out to avoid having the house foreclosed on.

Visit My Loan Modification Website www.miloanmodhelpdesk.com/
Visit My Short Sale Website http://www.miforeclosurehelp.com/
Visit My Short Sale or Stay Calculator Site http://www.mishortorstay.com

Thanks for reading, Rick Giese.

Rick Giese is a real estate associate broker at RE/MAX Advisors.

Phone Toll Free: 1-800-274-5656. email: Rick@RickGiese.com

Rick Giese specializes in loan modification assistance and short sales in the Macomb , Oakland and southern St Clair County Areas of Michigan. Macomb Loan Modification Help, Macomb Short Sale Help. Oakland Short Sale Help Macomb and Oakland County MI our services are offering sellers another option besides pre-foreclosure foreclosure or bankruptcy that can affect their credit for years. We are currently offering our services in the Richmond, Shelby Township, Macomb Township, Chesterfield Township, New Baltimore, Clinton Township, Sterling Heights, Mount Clemens (Mt Clemens) Fraser, Harrison Township, Warren, Roseville, St Clair Shores areas of Macomb County Michigan Madison Heights, Troy, Clawson, Royal Oak, Rochester, Rochester Hills, Berkley, Birmingham areas of Oakland County

IMPORTANT GOVERNMENT DISCLOSURE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you will not have to pay us for our services. The above brokerage is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.