Signing Quitclaim Deed Not Enough to Remove Mortgage Responsibility


Signing Quitclaim Deed Not Enough to Remove Mortgage Responsibility after a Divorce

One of the fundamental aspects of any California divorce is the property division that must take place in order for the marital estate and ultimately the marriage to be legally dissolved.  Many times, the family home will be awarded to one spouse based on the stipulation that the person obtaining the home will refinance the mortgage at some point in the future after a quitclaim deed is signed by the spouse that’s moving out.  Unfortunately, simply signing a quitclaim deed is not enough to remove the responsibility for the mortgage from the person who is leaving the home.

Recent cases have been publicized that concern this very issue.  These situations involved one spouse being awarded the home and the other spouse signing a quitclaim deed so that the mortgage can be redone to reflect the new ownership.  However, many of these divorce decrees were not specific in terms of when a refinance had to be completed, and when the homes fell into foreclosure, the person who had moved out and signed away any ownership rights suddenly had his or her credit ruined as a result.

The reason that these spouses surprisingly found themselves in this ruinous position was because even though they no longer were included on the deed to the property according to the county, they were still on the mortgage documents.  As a result, the lenders were able to pursue these parties for the unpaid portion of the loan after the homes had been repossessed.

San Diego Divorce Lawyers

Overall, there are many things that must be done properly in order for a California divorce to be completed, and failure to take these steps can lead to disastrous consequences in the future.  Those who are in this position should seek experienced legal help to make sure that they do not wind up in court for something that they felt was no longer their responsibility.

If you are facing the prospect of ending your marriage, you need to seek the help of San Diego divorce lawyers who have helped many husbands and fathers move on with their lives.  Contact the Men’s Legal Center today to schedule an initial consultation.

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