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Can I include an exception clause (only valid if EX refinances loan) in a Quit Claim Deed in San Antonio, Texas, Bexar County.
Anonymous3 views2 answers
I prepared and filed the divorce . Due to the costs and circumstances, I did not fight for anything. The Divorce decree indicates He receives the house, but does not specify by what means. My Ex is requesting I sign a Quit Claim Deed form, as he is in the process of a Loan Modification. He is currently behind 4 months due to unemployment and illegal firing. The bank will not proceed unless I sign the form. I understand signing the Quit Claim does not release me from financial obiligation to the Mortgage Company. I advised my Ex I would have no problem signing the Quit Claim once he has refinanced, however he insists this form is required to proceed. I've yet to speak to the Loan Modification Rep with the financial institution.
As often happens in Texas, people try to add things to various types of deeds and ultimately, create more complicated work for attorneys and judges trying to interpret and clarify the meaning of the instrument. I agree with Mr. Moore, get in with an attorney to review and help you to protect yourself because there is no guarantee that an "exception clause" on a quit claim deed would ever be looked at or noticed or enforceable. Also, Mr. Moore hits the nail on the head- a modification is not the same thing as a refinance, and even if your ex needs the mod to try to refinance later, it sounds very shaky to me- like you will still be on the hook somehow.
Best of luck to you.
Take the paperwork to a lawyer and get a consultation. The lender will not let you off the note on a modification. It has no reason to do so. I'd suggest using a special warranty deed and a deed of trust to secure assumption. If you don't understand what I'm talking about, I urge you again to consult with an attorney.
