Legal Question in Real Estate Law in Iowa
Before I was married, my wife bought a house through Chase on the secondary market. Later we married and divorced and she moved away and quick claimed the deed to the house over to me. I have been making the payments on this house for a few years now. I want to sell the house on contract but Chase says that I cannot. I have remarried and want to move. I am disabled and live on my disability income. Tthe Banks say that because of this situation, I do not qualify for a mortgage loan, so I cannot pay off the present mortgage to take my ex and Chase out of the picture. I have put money into the house and want to recover it by sale, but the market is soft. Here is my question. Can I walk away from this property without repercussion? Will they go after my ex to make the payments or me because the deed is in my name? Should I quick claim the deed back to her and ask her to sell and pay me back for my improvements? Who really owns this house? Who is really on the line for the mortgage? I'm confused
1 Answer from Attorneys
Can I walk away from this property without repercussion?
There would be no financial repercussions to you as far is the bank is concerned, assuming you did not sign any document which obligated you to pay them. Your divorce decree might say something different as between you and your former wife however.
Will they go after my ex to make the payments or me because the deed is in my name?
Your former wife
Should I quick claim the deed back to her and ask her to sell and pay me back for my improvements?
First of all, it is "quit" not "quick," and you quit claim property, not deeds. Your suggestion is a possibility, but if the bank has already said it will not allow the property to be sold on contract, I am not sure I see how this changes the situation.
Who really owns this house?
Assuming a properly prepared and executed quit claim deed was recorded, you do.
Who is really on the line for the mortgage?
No one. The mortgage is a lien on the real estate. The financial obligation comes from the promissory note, so whoever signed that, owes the money.
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