August 2016 // Real Estate & Home Builders Guide // 5M
SPLITTING HOUSE AFTER SPLITTING
WITH YOUR SPOUSE CAN BE TRICKY
THINKSTOCK IMAGE
By Ilyce Glink and Samuel J. Tamkin
Tribune Content Agency
Q
: My ex-husband and I have a
home in North Carolina. He lives
in the home but both of our names
are on the title to the home and on the
mortgage loan. I now live in Georgia.
We have fallen behind on
payments, and we are approaching
foreclosure quickly. He is working
with a government agency in North
Carolina that will get the mortgage
current and pay for up to 36 months if
he qualifi es under the program. They
believe he will.
They want me to sign a quitclaim
deed. I am aware that I will still have
a fi nancial obligation to the original
mortgage. My question: If I sign the
quitclaim deed and he passed away
and I was able to pay off the original
mortgage would the house be mine?
: First of all, you have to be
very careful when you deal
with anybody that claims they can
help you out but want you to convey
title to the home. Frankly, we are
suspicious of whether the “agency”
you are working with is a legitimate
governmental agency. Frequently,
many companies will use language
and names in their literature to give
you the impression that they are
government sponsored or related to a
government agency.
You should make sure they are
actually a government agency. If they
are, you should be able to fi nd them
on the offi cial website for your state’s
government. If you can’t fi nd them
there, they may not be a government
agency. You should check the agency
or company name out on the web and
A
by searching their name on the Better
Business Bureau website to see if
there are any complaints against the
company online and with government
agencies.
Once you have determined they
are legitimate, you can move forward
and see what plans they are offering
and what they can do for you and
your ex-husband.
What makes us suspicious is
that you write that they want you to
quitclaim the property but you don’t
mention if that’s to your husband
or to the agency. In either case, we
question why they would require a
change in the title ownership to the
home, especially when the existing
loan won’t be paid off and you’ll still
be on the hook for the existing loan.
You don’t know what benefi t they’re
offering, and how it would affect you.
You also don’t mention whether the
house has equity. If it has equity, and
you sign over a quitclaim deed, then
you will no longer have an interest in
the home and will lose access to any
equity that exists.
With regard to the last part of
your question, if your ex-husband
dies after you quitclaim the property
to him, you’ll have no right to the
property. The only way the home
would go back to you is if your
ex-husband names you in his will to
get the home upon his death. That
would be unusual given that you two
are divorced.
Make sure that you investigate the
company, understand what the deal
is and how it affects both you and
your ex-spouse, and discuss other
options with an attorney. Do not sign
anything until you do.