My ex-wife and I are trying to figure out how I can buy her out of the house that we shared. It has a 2.5% rate and I’d like to keep it if possible.
Our loan is through Valon, and they’re sending me paperwork on assuming sole responsibility for the loan. Then it looks like she and I both need to file a quitclaim deed.
When I google about quitclaim, I see language that says “the grantor remains responsible for mortgage and tax payments until the loan is paid off.”
Obviously, we both want her completely off the loan and the deed/title. Assuming Valon lets me assume primary/sole responsibility for the loan, is this something that’s possible to do? I make enough income on my own to qualify for it, so I’m hoping that’s all it will take.
Thanks for any input.
How do I buy my ex-wife out of our home but keep the current mortgage? Washington state.
byu/TrueEclective inRealEstate
Posted by TrueEclective
4 Comments
If you were married you should be able to do a novation. This will keep the original term/rate. Ask your lender, they will likely coordinate this paperwork through a title company. Just doing a quit claim is not enough.
Every state is different. If Valon is telling you what to do, I’d abide by that. If you’re really concern contact a local attorney and it may be worth the $200-$300 consultation fee. Better safe than sorry.
The deed is for ownership. The mortgage is separate. You’ll need to deal with both.
A quit claim deed renounces any ownership. She could do a quit claim which would give up her ownership. That doesn’t get her off the mortgage, though. That is part of the process. I would consult with an attorney to be sure a quit claim is the best choice. A warranty deed may be better. With her and you as grantor and just you as grantee.
You’ll have to work with the lender on getting her off the loan. Sounds like you’re doing that.
Ideally do both parts at once.
If I was your wife, I would not sign a quit claim deed until I was off of the mortgage. That puts her in the worst possible position: gave up ownership rights and still responsible for the mortgage, should you default.