Quitclaim from break- up in Tennessee

[lmattjr032]

My ex and I bought a townhouse together. We've separated since and she wants me to remove my name off the mortgage and not receive anything, monetary wise, in return. We have not come up with a compromised conclusion, so she's becoming forceful. My question is, is it possible for the courts to force you to remove your name off a mortgage or deed in any way?

 

[cdemott]

I actually went through the same thing in Tennessee last year! The court cannot force you to take your name off the mortgage. That said, you are still responsible for the payments and your credit will be ruined if she stops paying. Luckily, my BF bought me out, at the going percent rate. I had my entire deposit given back and 4% - He kept all of our assets and we negotiated a cheap way for me to be bought out of our furniture and other stuff. We were able to work things out fairly efficiently. You have to agree to have your name removed from the lease and will meet with the bank. All of the papers you need can be found at a store like Home Depot. Your mortgage company will have to remove your name from the mortgage separately. This is VERY IMPORTANT! Do not have your name removed from the deed until you are off the mortgage. These events can occur at the same time. The deed is kept with the county clerks and the mortgage with whoever you borrowed from.

She will have to refinance her mortgage. She might do this with the original bank or with another lender. She will get a different rate. The house may have to be appraised again. How long have you owned it together?

I highly recommend versing yourself on your legal rights and being as fair and honest as you can. Breaking up stinks. The house is a buisness deal. Sadly our current laws do not cover partners and housing issues, a matter that should be addressed.

She is likely becoming forceful because she is paying a mortgage for a house that you still have rights to.

You have 2 options that I see - one, let her buy you out, keeping in mind the current housing slump and that you probably won't get very much or two, you guys sell the house and split any profit from the sale. This could take a long time and depending on the amount of time you have owned it, might be at a loss. You can go to court and make her sell the house.

My advice is to think about your options, talk to some people who are not emotionally involved, and try to get out of this. The easiest way for you is the buy out. It is quick and fairly painless for you, but requires a lot of work on her part. Take this into account when you are discussing it and the amount that you should get. (Typically it is the deposit you put down plus a percent of the appreciation).

Good luck. Next time, I'm getting married before I buy a house with someone. It was a mess.

 

[cdemott]

I went through the same thing in TN a year ago. You have 2 options - a buy out or selling the property and splitting the expenses and profit. You can go to court to get her to sell the property if she will not do a buy out.

We did a buy out. I received the money I put down on the deposit and we split the appeciated value. The house will need to be appraised again, which costs money. This, should be split by you both. Understand that your ex will have much more work than you. She will have to refinance the loan.

The Quitclaim can be bought at Home Depot and she will need to make arrangements with her bank/lender to do all the signing. She will also have to get the deed arrangemets taken care of with the county clerk. This takes a lot of organization. You guys might want to pay someone to help you.

If you demand a selloff - in this market, it could go unsold for a long time and you would be responsible for mortgage payments or finding someone to take over them.

She is probably very nervous about paying the full mortgage and having your name still on the deed. It is understandable. I was the person that was bought out and I tried to allow it to go as smoothly as possible.

Good luck.

 

[lmattjr032]

Thanks for the advice.

 

[lmattjr032]

Sorry it took so long to get back to you. We've had since 08/08/06. It has appraised for less than the sale value. Do you happen to know what will happen when it's refinanced now? Will it be refinanced for what is owed or what the house is worth. The main thing that has been paid on it is interest.