The Quitclaim Deed Nightmare
Some people think if they sign a Quitclaim Deed to the family home this also releases them from any responsibility of the mortgage – it does not!
When you sign a Quitclaim Deed you are signing away any legal rights you have to the property, but the mortgage company could care less that you signed the Quitclaim Deed – they still want their money – from you, from your former spouse or both!
Don’t get caught in the Quitclaim Deed Nightmare!
The Quitclaim Deed Nightmare, Mortgage, and Foreclosure
If you sign a Quitclaim Deed on your spousal house you are signing away any legal rights you have to the house.
After the divorce, if your former spouse is unable to continue making the mortgage payments the house may go into foreclosure. If this happens there will be nothing you can do about it because you signed away your legal rights to make any decisions on the property – you signed a Quitclaim Deed.
This can begin the process of the Quitclaim Deed Nightmare.
Late Payments – Damaged Credit
You may have signed a Quitclaim Deed but you’re still on the hook for the mortgage! The first month your former spouse is late with a house payment both of your FICO scores will take a hit of approximately 100 points.
If the house goes into foreclosure, both of your credit ratings will be destroyed for years to come.
Neither of you will be able to buy another house for 7-10 years.
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What I Do:
1. I help people who own a home together, and plan to separate and/or divorce, avoid making very expensive and long-lasting mistakes with their co-owned home.
2. Although my information can help anyone who plans to divorce, it is best suited for those who are not contesting the divorce (too much) and are as amicable as possible.
How Do I Do This?
1. I'll consult with my clients and compassionately help them completely understand all of their options with the home.
2. I'll explain the option of one person keeping the home and refinancing the home, so the former spouse is no longer on the mortgage loan.
3. I'll explain the option of selling the home and splitting the equity, and then each person having the option to buy a new home on their own.
4. I'll explain why an appraisal-minus-the-mortgage does not equal true equity, and why a home inspection (sometimes called house due diligence) is very important at this time.
5. I'll explain to my clients how their decisions with respect to the home will impact their quality of life for many years to come, positively or negatively.
6. I'll explain how the information I can provide will help my clients make better decisions for their future.
7. I'll explain how my clients can avoid making expensive and long-lasting mistakes.
8. I'll introduce my clients to other professionals, such as mortgage professionals who can better explain the refinancing and new purchase options.
9. I'll explain my discounted commission rates that I offer my clients if they choose to sell the house and choose me as their REALTOR®.