Most individuals have heard of or used a quit claim deed. It seems like a simple solution to easy or complex problem(s); however, it can create issues that linger. Quit Claim Deeds are most commonly used in divorce in an effort to settle a dispute between a couple. Generally one person will sign over the rights to the property while remaining attached to the loan. In return, the benefitting spouse promises to refinance as timely as possible.
Life continues and the other spouse continues to pay the mortgage and maintain the home. You, the one who has signed away the rights to your property via quit claim continues your new life without concern, at least without concern related to the property in question. Really, why should you care, you have given up your rights to the property in trade for whatever settlement you have agreed to.
Well, my friend, that decision could come back to haunt you. In an economy where real estate is not easy to swap, sell, or, at times, give away, being attached to a loan without ownership in the secured property will create a severe storm in certain conditions. Did you ever think about your ex-spouse's demise while still enjoying ownership of the property? Did you ever think you could still be responsible for the mortgage without any ownership in the property?
What if your ex-spouse never refinanced the property and after several years passes away untimely. It is at that point that the mortgage company is knocking on your door, and the estate could care less about your issue because as far as the estate is concerned, you own the mortgage and the estate owns the residence - period. What to do? Most attorneys will tell you about the doctrice of SOL and bid you good luck in your endeavor. More to come...please check out Birmingham Law Blog
No comments:
Post a Comment