What is a Quitclaim Deed and How Does It Work?
A quitclaim deed allows the owner to transfer his or her legal interest, such as a house, to another person. The grantor is the transferrer. This person uses the quitclaim to execute and complete a real estate transaction. It gives, trades, or sells the property interest to the recipient, such as a spouse, or another person who is considered the grantee. The need to refinance can still be a concern even after the divorce settlement has been completed. The property could lose interest without the refinancing involved in the transfer or require high mortgage payments.
Refinance your Home
Refinancing the property following a transfer in interest can lower the mortgage rate or guarantee that the interest rate is fixed. This can help the new owner pay less monthly and make it easier to manage their mortgage payments. Refinance is usually a better option than selling after a divorce. This happens when there is sufficient income to repay the loan and to keep the property. This could be a way to provide a home for your ex-spouse or children and an opportunity to invest in property for as long as you can.
If the quitclaim deed has already advanced to the next stage, but the refinance fails the former owner with an interest in the property might not be able to acquire the funds the process will provide. The ex-spouse may not be able to get the money until another option is found. A real estate family law lawyers surrey may be necessary to help the person determine which options are best for them. The money due to the quitclaim deed should be paid if the divorce decree requires the property to be given up.
Dividing and selling
A real estate agent may advise that the best way to sell the property is to either divide it or sell it completely. If refinance is impossible or the ex-spouse refuses to refinance, it may be necessary to contact the courts regarding selling. When the other party refuses to cooperate with the larger asset in a smaller estate, intervention by a judge may be necessary. The reason an individual obtained the quitclaim deed to ensure that the asset is divided according to the judge’s decision was to make money.
Take into account the following:
To ensure that the assets can provide equity or monetary disbursement, the spouse may have to discuss the matter with the individual. Before you consider this option, consult a tax professional if the house is not to be sold or acquired equity or money. Gifts can be a great way to get a tax deduction and a better outcome for estates with multiple assets. If the circumstances are right, it is possible to transfer the loan to another person or use a different method of refinancing the property.
Secondary funding institutions might be able to provide funds to pay off the mortgage, acquire the highest equity possible for a sale, or transfer interest to the other person to clear the existing interest in the house. Ex-spouses might want to contact a lawyer and present the situation to him or her to find out if other options are available. A lawyer or agent may be able to help you decide how to proceed. Some options can take many years to resolve.
Legal Support for the Quitclaim and Refinancing
A lawyer may be needed to help the person if he or she is unable to obtain the monetary funds necessary for the interest. It is common to need a lawyer to help find a solution to the problem and to talk to a judge about the matter to speed up the process.