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Julieann, Other/Just Looking in Los Angeles, CA

My husband and I are in the process of refinancing our house in California. It should be noted that we

Asked by Julieann, Los Angeles, CA Sat Jan 31, 2009

Our rebroker advised that the loan be obtained in my husband's name only to ensure a better interest rate since his credit rating is higher and were assured that my interest in the house would remain but that I would have no personal obligation for the mortgage. However, now that we're actually in escrow, we found out that I must sign what appears to be a quitclaim deed, giving up my rights to the title of the house, including any community property rights. Needless to say, we're both flabbergasted, but are reluctant to lose out since we're locked in at an incredibly low rate. (This psychologically hurts even more since I paid for original down payment and MY parents gave us a Christmas gift of money to cover closing costs now.) IF we go ahead with this and I sign the quitclaim, can my husband put me back on the title after the refinance without the loan being accelerated? AND what about federal gift tax?

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3
Thumb up Kieth .... This makes no sense
0 votes Thank Flag Link Sun Feb 1, 2009
Julieann
For legal advice consult an attorney.

This makes no sense. Although I am not aware of all the facts. Note that there is a difference between being "on title" and "on the mortgage". I would ask your question to your title officer. You are paying for title insurance, you are entitled to their expertise and knowledge.
0 votes Thank Flag Link Sun Feb 1, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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Hello Julieann,

Here is what I advise (I must say that I'm not an attorney or CPA). See if your husband can do a quick claim deed after the loan closes back to you after the loan records.Contact your lender about this and or escrow. The next thing you might want to do is speak to a Real Estate attorney. Since you contributed to the down payment (if you were married at that time) then this quick claim deed might not stand up in court as you contributed to the property and California is a community property state. Many times, pre-nups don't even stand up in court, so check with an attorney. You are luck you got a loan in this voltile market. I think your smart to stick with it but I know it's painful not owning part of a house you have contributed to but chances are good that if you check with an attorney they may advise you that it would be difficult to say the house isn't half yours. Your best bet though is to see if you can do a quick claim adding you if it closes.

All the best,

Monique Carrabba
The Carrabba Group
Keller Williams Hollywood Hills
mcarrabba@kw.com
0 votes Thank Flag Link Sun Feb 1, 2009
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