You share joint ownership in your home with your partner and want to refinance the mortgage. Here's the problem: You no longer work or maybe your credit scores are not as high as they should be, but your partner is still working and is as credit-conscious as ever. He can qualify for a new mortgage without you, but the property is jointly titled. There are ways to resolve the joint deed issue. One thing you can do is have your closing attorney (or title agent) assist you with a "quit claim" deed, in which you cede your 50 per cent ownership to him, giving him 100 per cent legal control of the property. To avoid feeling that you are giving up an asset, he can have you added to the new deed as an owner at the new closing.
- Skill level:
- Moderately Challenging
Other People Are Reading
Things you need
- Quit claim deed
- Copy of your deed
Call your lender or mortgage broker. Explain that you want to refinance your mortgage, but that the deed is in both your name and your partner's name. Explain that you will not be on the mortgage and need to take steps to legally give your interest to your partner so that he can refinance without you. Ask for the name of the title company or closing attorney that the lender would most likely close your loan with. They will likely give you this information as well as call them to schedule a meeting for you.
Attend the meeting at the appointed time. Take your deed with you, since it will show the legal description of the property. Speak with the attorney about your refinance and he will explain that you can be taken off the deed by executing a new deed (this will vary from state to state). However, the simplest legal document, a quit claim deed, can be executed, which will convey to your partner your 50 per cent interest in the property. This does not remove you from the loan, and in the interim period of mortgage processing, you are both still obligated to the old loan. If you sign over your interest early and your partner ends up hospitalised, you will have no control over the property.
Plan on attending the closing of the loan. Your closing attorney will have the quit claim drafted and will have you sign and date it at the closing. It will be filed (in county records) prior to the new lien with the new mortgage in your partner's name only. You can choose to be added to the new deed at the closing as an owner, but you won't be on the loan against the property.
In the event you were not added to the new deed and wish to retain your 50 per cent ownership in the property, have your closing attorney prepare another quit claim deed (after the closing), showing your partner giving 50 per cent of his 100 per cent interest back to you, and have it filed in county records. Now your have the same interest and control of the property that you had previously.
Tips and warnings
- It is always best to consult a real estate attorney in mortgage title matters.
- A quit claim deed does not warrant anything; all it does is transfer interest in property. Some have used quit claim deeds to transfer interest and control in property to another party not knowing if the title to the property was clear. Always use this type of deed under direction and supervision of an attorney or title agent.
- 20 of the funniest online reviews ever
- 14 Biggest lies people tell in online dating sites
- Hilarious things Google thinks you're trying to search for