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Divorce And Real Estate, Quitclaim Deed? What about the Mortgage?

August 29, 2010

As a former paralegal in both litigation and family law firms, this is a question that often came up. Often, the question came up AFTER dings on their credit report for a debt that the ex-spouse was supposed to pay, but was paid late, or not at all. Sometimes it came even later, after a foreclosure showed up on their credit report. How can that be, they always asked?

So, what is the deal? The deal is, that the Quitclaim Deed is an instrument for resolving the issue of title. It has no affect on a prior loan that was signed off on both parties.

Ouch! So, what does that really mean? For divorcing parties, what it means is that it is a good thing to keep in the back of your mind, that for all intents and purposes, there are two ways to take your name off of a joint mortgage with your spouse, or soon to be ex-spouse. 1. Refinancing or 2. Sell the house.

Consult your attorney to ask about the affects of remaining on a loan after the divorce. Ask if, and how, a violation of the MDA (Marital Dissolution Agreement) can be resolved. Ask the big question. Once the damage to my credit has occured, can it be resolved?

And, lastly, hire an RCS-D™ designated REALTOR® to assist you in wading through the information and steps you should take to determine when, or if, the house should be sold.

Divorce Real Estate

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