Legal Question in Real Estate Law in Indiana

Re: Removing co-sign's name off mortgage

A quit claim deed only transfers only your share of the legal title. It does not remove your liability on the mortgage. The only way for that to occur is for the mortgage company to release you or for the other owner to refinance in his name alone. In your divorce decree, there may be a clause for your spouse to assume, pay and discharge the mortgage and hold you harmless. This means you are in the new position of being a guarantor to the mortgage and can compel the mortgage company to exhaust all its remedies against your spouse prior to seeking contribution from you toward the mortgage. Of course, if he defaults, this does not protect your credit standing. It merely gives you a right to go after him to recover what you have to spend.