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Reged: 06/07/09
Posts: 6
Loc: MN
Upside Down Mortgage
      #545063 - 06/11/09 01:39 PM

Our house is worth less than we owe. An atty. says that I can't just quick claim deed the house to him because the mortgage co. will still come after me -- no matter whose name the title is in. Really? How can we divide any of the debt then? If we divide the debt, and then he doesn't pay, won't any creditor come after me? I thought that the divorce decree would deliniate who owed what and to whom so that we each could start over. If anyone has experience with what to do with property owned jointly that has declined in value, please tell me what happened in your situation. Thanks. JBD

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Reged: 03/05/08
Posts: 187
Re: Upside Down Mortgage [Re: jaybeedee619]
      #545135 - 06/11/09 06:59 PM

A quit claim deed only grants what ever ownership interest you have, if any, in property to another. It has nothing to do with debt obligations. You and H signed a mortgage obligation to the bank. The bank is the only one that can relieve you of that obligation, not H, not the court, not a quit claim. Until you recieve a full reconveyance of the trust deed from the bank, you are both equally obligated to pay the mortgage. It's the same with any other joint debt, cars, credit cards. I could perfectly legally grant you a quit claim to your neighbor's house. Since I don't own it, you get nothing, and your neighbor is not harmed in any way. The CO can set down rules between you and H, but it doesn't change any contracts jointly in force. Suppose H says he'll pay and the CO agrees. Some time later H decides he's tired of paying and has nothing the bank can easily attach. The bank turns around and takes the debt obligation from you. You're only recourse is to sue deadbeat H who apparently is not able to come up with the money anyway.

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Reged: 06/17/08
Posts: 6756
Re: Upside Down Mortgage [Re: d2njti]
      #545209 - 06/11/09 11:38 PM

your stbx would have to refinance the house in his name only before you sign the quick claim deed

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