Property Issues

North Carolina Divorce Law Divorce and Separation Answers
1

My ex-husband and I have been divorced for two years, but I remained in the home that we bought together. My ex has put me through some financial difficulties with taking me to court to try to take my kids away and due to the legal fees I fell behind in the mortgage and the house is facing foreclosure. My ex wants to save the house and wants us to come up with a written and notarized document stating that he would pay the past due amount in exchange for me doing a quitclaim deed. It would also state that he would assume all financial responsibility for the house until it sales or he refinances. I understand that by signing the quitclaim deed it still leaves me on the mortgage until he refinances or sales. I would like to know if we would be able to come up with a legal document stating those terms and having it notarized. I know by having the document notarized it is a legally binding agreement and the mortgage company will still hold me and him accountable for it, but with him signing the paper taking full responsibility of the mortgage will it be upheld in a court of law if necessary?

I will add that I do not wish to try to get anything from the house, I just want to have my name removed from the mortgage, so how wise will it be to agree to do a quitclaim deed and sign this paper?

2

A quitclaim deed does not do anything to require your ex to refinance the loan. You may enter into a contract which requires him to assume all financial responsibility, and to refinance or sell within a certain amount of time. If your husband is contractually bound to pay the mortgage moving forward a court can hold him accountable to you for any loses you incur, and force him to list the home for sale if he has not refinanced with in the prescribed time frame. The mortgage company still has the ability to go after you personally unless and until the mortgage is refinanced into his sole and separate name or the home is sold.

3

Thank you, but would it be wise to do the quitclaim deed? And if he doesn’t adhere to the contract we enter into and the mortgage company comes after the both of us for anything, will I then have legal recourse against him for not following the contract?

4

I do not recommend doing so unless and until your ex obtains a new loan in his own name. Releasing your rights to the property leaves you personally liable for the debt without having your ownership interest in the property as security. The deed should not be executed until the closing on the refinance loan.