My brother lives in arizona, He is recently divorced and having a tough time making payments on the house they bought together, BofA and the government modification folks say they cant do anything until she signs a quit claim deed which she does not want to do. i believe she is concerned about future financial responsibility for the house she doesnt live in anymore even though az is a non recourse state.
my questions are:
Is there anything he can do besides foreclosure?
If she signs the quit claim can he then refi or modify the loan to remove her from any future financial responsibility for the house?
Is there anyway he can do the modification without the qc deed?
any advice is greatly appreciated.
In her position there is absolutely no way I woudl sign a quit claim. That's gives up any ownership of the house but does nothing to get her off the loan.
What is he going to do, a loan mod or a refi? If he's going to do a refi, the quit claim and the refi closing should all be done at the same time at the same at the same title company or lender office. Similar for the loan mod. If she's off the deed she should get off the mortgage at the same time.
If there's no equity, the cooperating in this deal is better for her. She's off the loan, which gets her off the hook for the loan and off the hook for any future troubles.
If there is some equity, even a little, then offer to pay her off for that equity. Realize, however, there are significant costs to selling a house. Sometimes folks think they have $5000 in equity if their house is worth $100K and they owe $95K. In reality, they are about $5000 in the hole.
What did his divorce decree state to do with the asset? Seems like that part might be important. If he was awarded the house, then he should be able to get the court to request her to quit claim it, I would believe.
If the divorce is not final, then he might have to keep her on the deed and mortgage until the court resolves it. The lender will have to deal with her as a party to the mortgage which can be done through a modification and amendment and the deed through a quit claim.
I would also think that the the lender could issue a statement that removes her future liability from the debt or deficiency in the future. Of course, provided she fills out the correct paperwork.
Hello. Its me the brother. In my divorce it says I am to keep the house and try to refinance her name off of it with in 3 years of divorce. There is no equity in the house. She will not sign a quit claim deed. But there is reason not to that I can see. The bank will not do anything to modify the loan with out a quit claim deed. What are my next options if any? Thanks
Does she understand IF this house goes to foreclosure,,,she is on the hook for the deficiency as well as you are?? MOST people are not aware of long term risk. Maybe not today, but if sold for a nickel on the dollar to a collection company,,it will be a nightmare.
Signing off as Jon was suggesting in his post, is safe and removes her from liability. Some times the 'hate' is so fresh and overwhelming they cant see the Forrest for the trees.
So you have a court order to refinance her off the loan. Perhaps she is not aware this can be done at closing? If she is aware or doesn't care then your issue is back in court with your ex and there is nothing you can do until you resolve that legally between the two of you. If that is the case, talk to your divorce attorney, she is not abiding by the divorce decree.