Legal Question in Real Estate Law in Connecticut

Quit Claim Question

My wife and I are getting a divorce. I agreed that she can have the house, which is valued at 200K and which we owe about 130K on. Our mediator said she either needs to re-fi under her own name, or I need to sign a quit claim. He said this will only release my interest in the property, but NOT remove my financial responsibilty from it - meaning the lien holder COULD come after me if the loan was defaulted on. Is this true?


Asked on 7/18/07, 1:05 pm

1 Answer from Attorneys
Diana Bartolotta B-Law LLC

Re: Quit Claim Question

Yes, that is correct.

The mortgage loan is a contract between the lender and you and your wife. The separation agreement you and your wife sign might say that only the party living in the house has to pay the mortgage, but that doesn't alter the terms of the agreement you have in place with the lender.

I also want to correct one statement you made: it's not that you need to EITHER refi OR quit-claim, you need to do BOTH. Here's why:

1. The refi takes you off the agreement with the lender, so the lender can't come after you if she doesn't pay. It also takes the loan off your credit report.

2. The quitclaim deed gives your soon-to-be ex-wife title to the property, which it sounds like is the separation agreement you have come to. Most lenders won't let her refi with you on the title, as they require that the name on the deed match the name on the mortgage.

Good luck!

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Answered on 7/18/07, 1:18 pm


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