Signing a Quitclaim Deed in Divorce
In the State of Arizona, signing a quitclaim deed in divorce is a consideration for someone who wants to give their legal interest in the marital home over to their soon to be ex-spouse.
The bad news is that you can sign away your interest in the home, but you’ll still be responsible for the mortgage! Remember, liens follow the property; debt follows the persons who signed the loan documents
Signing a Quitclaim Deed in Divorce Can Be Detrimental
The signing of the quitclaim deed will remove a person’s legal interest from the marital home, but the person who signs the quitclaim deed will still be as equally responsible for the mortgage loan as the person who is retaining the legal interest in the house! Somewhat shocking, isn’t it? You have no legal say in something, but you still have to pay for it.
You see, banks do not care about your signing a quitclaim deed in divorce, you can sign what you want, but they still want their money that they loaned you and your ex-spouse to buy the home, and if your ex-spouse does not make the payments the banks are coming to you for the money!
Remember, liens follow the property, debt follows the persons who signed the loan documents.
How Signing a Quitclaim Deed in Divorce Can Lead to Foreclosure or, Worse, Bankruptcy
A real tragedy could play out here; you could sign away your interest, and your ex-spouse keeps the home. Six months later your ex-spouse finds that they cannot afford to make the payments and will not sell the house for emotional attachment reasons.
The first month the mortgage payment is late both of your credit scores will take a hit of about 100 points. If the house goes into foreclosure your ability to buy another house will be put into jeopardy for up to seven years, and up to ten years if bankruptcy enters the picture.
You can read more information here: The Quitclaim Deed Nightmare