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 home 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, and neither of you will be able to buy another home for several years.