If I sign a quitclaim deed so my ex-spouse can have the house, can I still get my name off the mortgage?
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If I sign a quitclaim deed so my ex-spouse can have the house, can I still get my name off the mortgage?
How do I do that?
Asked on August 18, 2011 Pennsylvania
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Has he tried to refinance? This is the most common way to handle such a situation. If he hasn't he should. If he has tried but has been turned down, you can ask the lender to allow what is called a "novation" to take your name off of the mortgage. While this is only rarely allowed, it's still an option worth trying. A novation could be accomplished by your ex-spouse proving that he has paid the mortgage without you. If he is current and has never been late with payments, the lender may allow the removal of your name. Your lender may also allow a novation if your ex-spouse "buys" your release by making a substantial payment to reduce the principal mortgage balance.
You should be aware that you may want to wait to sign a quitclaim. Most mortgages have a "due on sale (transfer) clause". Once you no longer have any interest in the property this clause may be triggered. At that point the lender could "accelerate" the mortgage; this means it could demand payment in full.
At this point you should consult directly with a real estate attorney in your area to go over your options.
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