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    annmar66's Avatar
    annmar66 Posts: 1, Reputation: 1
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    #1

    Apr 15, 2009, 02:54 PM
    Release of Liability
    I bought a home with my fiance' a year and a half ago. I would like out of the relationship. If I sign a quick claim deed and get our mortgage company to grant me a release of liability, will I be free of the mortgage and line of credit owed on the house?
    tickle's Avatar
    tickle Posts: 23,796, Reputation: 2674
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    #2

    Apr 15, 2009, 04:28 PM

    This is from the MortgageFit website you can access on google:

    Can quitclaim deed transfer mortgage debt?

    Quitclaim deed is a legal document using which you can convey your share of property-interest to another person. The deed indicates that the title is conveyed from the grantor (transferor) to the grantee (transferee). But it does not guarantee that the grantor holds the legal rights of ownership. The deed also does not imply that the title is free of liens. The quitclaim deed merely states that there has been a transfer of interest from one individual to another.

    Thus, when you transfer property rights, a quitclaim deed serves your purpose. But you cannot transfer mortgage debt or any financial obligation through the deed. If there is a mortgage on the property you wish to transfer, you'll have to pay off the debt prior to the transfer and make the title free and clear. Otherwise, you'll have to transfer the loan as well.

    In order to transfer a mortgage to the grantee, you'll have to convince the latter to refinance the loan in his/her name. And, at the time of refinance closing, you can sign on a quitclaim or grant deed in order to transfer the property to the grantee. Alternatively, you can transfer the title first and then have the grantee refinance the mortgage in his name. But before you do so, get it in writing from the grantee that he'll refinance as soon as you convey the title. Otherwise, you'll (the grantor) be left to pay off the loan entirely without having the property in your name.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #3

    Apr 15, 2009, 04:47 PM
    Quote Originally Posted by annmar66 View Post
    I bought a home with my fiance' a year and a half ago. I would like out of the relationship. If I sign a quick claim deed and get our mortgage company to grant me a release of liability, will I be free of the mortgage and line of credit owed on the house?
    IF you can get the lender to release and sign a quit claim yes you would be free. But the chances of the lender releasing you are extremely small and just doing a quit claim is not enough.

    Your best bet is to sell your interest to your financee, where she gets refinancing in her name. At the closing you sign the property over to her.

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