Legal Question in Real Estate Law in Colorado

I purchased a house in Colorado and I'm closing in a couple of days. My mortgage broker asked that my wife name removed from the contract to make the loan process easier since I'm the one who works and have good credit while my wife does not work. He assured me that on the day of closing her name will be on the title as a joint tenant with right of survivorship. Now he says the title company does not want to do it and we have to do do quit claim deed to add her name later on. I'm not very happy with this. Any advise? can I change the title company?

Thanks.

Rabi


Asked on 8/10/10, 9:35 pm

1 Answer from Attorneys
Gary C. Johnson Attorney Gary C. Johnson

Rabi, your broker is misleading you. Changing ownership by Quit Claim to include your wife after closing may cause a "due on sale" clause in your mortgage. The title company is doing the right thing. The mortgage company should include your wife in its loan process. It may be "easier" for your broker, but can result in unexpected consequences.

Are you recently married? Does your wife have bad or non-existent credit? In any event, do not rely on oral representations. I recommend talking with an experienced attorney that does estate and real estate planning.

DISCLAIMER This answer is for informational purposes only and discusses general legal principles, trends, and considerations and is not intended as specific legal advice regarding your question. This answer does not establish an attorney client relationship. http://www.garycjohnsonlaw.com 720-323-3776

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Answered on 8/16/10, 10:28 am


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