I agree with status quo: You could probably just continue to pay the mortgage. After all, when is the last time you heard of a servicer/lender starting a foreclosure because a widower wanted to make mortgage payments - very bad "PR"). You should still seek a legal opinion (hopefully via an estate lawyer with free initial consultations).
Also ask about the use of the Quitclaim as it may be more beneficial to use an Interspousal Grant Deed (IGD). An IGD is typically used to easily transfer real property between spouses so the property is not reassessed for tax purposes, you need to transfer interests in the property, and/or convert â€œcommunity propertyâ€ into separate property (California is a Community Property state).
A Quitclaim Deed (QD) releases an ownerâ€™s interest in a property without stating the nature of the person's interest or rights, and with no warranties of ownership. Theoretically, a QD prevents the grantor from later claiming they have an interest in the property. My understanding is the IGD is the "stronger" of the two as a QD can allow future claims against title based on the removed individual's actions after the fact. For example, I believe the act of the Grantor making improvements to the home MAY create an "ownership" claim/right.
Confirm all legal subject matter with your lawyer.
Best of Luck!
1. How are you appearing on title now? Joint tenancy with right of survivorship? Tenancy in common?
2. Do you and your husband have a will stating how assets will be disposed of upon one's death?
3. If you do a quit claim deed when your husband refinances, then you're renouncing your rights to the property. That is, you will NOT be on title. What is the reason why you would do that?
I strongly suggest you speak with an estate planner who is an attorney.
This is a sticky one. I believe because you were not on title at the time of inception that the lender would have the right of foreclosure. I am not definitely sure though.
I suggest you ask about right of survivor with an estate lawyer.
Not an easiest to answer.
Harold Sharpe - Broker
So Cal Homes Realty
California Department of Real Estate Broker License # 01312992