Quit Claim

[karbo0]

Can I quitclaim without re-financing 1st & 2nd mortgages?

Divorced July, 2008, leaving me responsible for monthly payments, ex-wife lives in residence 1st & 2nd Mort Home equity loan lien on title to be listed for sale no later than June, 2010. I have an option to "buy" her out decree states both loans need to be re-financed, now <5% inter.rate.. The house value is questionable probably worth $170k - $190k as I did receive a letter a month ago from BOA stating it is "underwater" and no money can be borrowed due to loan to value drop.Therefore it would be in my best interests to obtain a quitclaim & assume the 1st & 2nd Mortgage Would appreciate any feedback on my 3 Alternatives:
1.) Market house per decree "as is" splitting remaining debt owed with ex-wife - house needing cosmetic repairs in a very poor housing market that may NOT pay off debt owed
2.) "buy" the house from ex-wife, basically absorb all the debt owed by Quit Claim, would involve re-finance if required & hope the market value comes back in a few years to sell later on;
3.) Quitclaim & retain or assume (re-finance) 1st mortgage & retain 2nd Home mortgage in both my & ex's name pending principle pay down and housing market improved in few yrs from now allow re-financing of 2nd mortgage later if the appraisal for re-finance does not meet a 90% loan to value ratio.

Any help, comments, suggestions, other alternatives are deeply appreciated. !

Greg
Lawrenceville, GA

 

[tpajet]

You will have to follow what the divorce decree states, but if you can quitclaim it to her, I would do it. You are never going to be able to refinance the house unless house values shoot up again. So, if she's willing to quitclaim it and take over fully on the mortgage then you will walk away clean. If you sell it, then as stated you will have to split the debt with her. But the other problem with this route is you will also have to keep making monthly payments on it until it does sell. So you will end up with that on top of whatever rent/mortgage you have now.

 

[karbo0]

Thank you for your reply. It is very helpful in making a decsion in these uncertain times. She doesn't want the house