[celkarol]

In a previous joint ownership of a home, the relationship was as a married couple. Now it is own by the same two people, but as individuals. How can this be changed? Does this effect the guaranteed title?

[ScottGem]

As long as the people haven't changed the ownership hasn't changed.

[celkarol]

I'm trying to get a home equity loan and the title company wants a quit claim deed, which doesn't make sense to me. Why are they asking for this. I've read the deed and I agree with you. The parties haven't changed only the status of our relationship.

[ScottGem]

Are you trying to get the loan in only one of the names?

[celkarol]

No under both names. Does it matter that I dropped my married name? Or if it said married on the title?

[ScottGem]

It shouldn't, however, if you changed your name so it different then what's on the title, that may be the reason.

[celkarol]

I hyphenated my name to add the married name. I dropped the married name now, but didn't have to change passport or drivers license to do this. Does that mean I will need to do a quit claim? If so, how does that effect the guarntee title?

[ScottGem]

Why is the lender insisting? What explanation are they giving?

[oneguyinohio]

I would be a bit suspect on the reason for a quit claim deed? That is something you would do in order to give up your claim on a property. It seems more appropriate for the lending company to want to file a mortgage, second mortgage, or lien against the property.

Is the person who owns the house with you being asked to do the same thing?

To me, it seems like you would be giving up your ownership in the home if you take out the loan in this way. Are you selling it? Or trying to give up your interest? If so, I hope you are getting the loan for the full value of your equity.

If you are signing the quit claim deed, it would be a loan for you to pay back?

If the lending company does not explain it to your satisfaction, take your business to someone else... this really seems odd.

[celkarol]

They say because the Title states his name and mine, as his wife. The Quit Claim would be to change the wording on the Title to say his name, individual and my name, individual. A name and status of the partnership change.

He won't do it for the reasons you both seem to express.

The bank says it's only a way to change the name on the title. I'm just confused by the whole matter.

[oneguyinohio]

I think you need to find out if that change of how the names are written can be done in another way. Ask an attorney for advice... Is it financed at the same place where you are trying to get the home equity loan? If not, you could talk to someone there about what needs to be done to change the title to reflect your different relationship.

Are you divorced? Or just changing things into separate financial areas?

[celkarol]

We are divorced, but never had a property settlement. When the house is sold, we'll split the profits then.

It is not the bank that holds the mortgage.

The bank is the one saying we need a quit claim in order to reflect the change in title.

[oneguyinohio]

How about talking to the first mortgage holder to see if they have any suggestions?

Maybe the two of you, on the deed as spouses need to quit that joint claim, but to yourselves as individuals. Not to the bank.

I think I understand that now. The married couple X+Y are giving their claim to X and to Y as individuals.

I would not be afraid to have the bank show you the paper work and who's name will be on what, and how it will appear... until you are satisfied...

[celkarol]

Thanks, lots of options to consider.