Closing on house and new spouse to sign?

[bugsmom18]

What is the name of your state (only U.S. law)? Iowa

My husband was divorced about 5-6 yrs ago. His ex kept their house and had to re-finance to get his name off of it. Fast forward a couple years and my husband received tax bill and noticed his name was still on deed. We had quit claim deed completed and filed with courthouse. According to the assessor website, his name was taken off and it shows that deed was filed in June 2007.

Now, the property was up for sheriff sale but a realtor is going to buy it. They contacted us saying that my husband has to sign in order for the closing to go through because the quit claim deed wasn't notarized. I can't find a copy of what we did but I'm sure it was notarized and it was recorded at the courthouse. They are also saying that I have to sign the form at this closing, too. I've never lived at the property nor had anything to do with the property. Is this a 'normal' procedure? We are hesitant to sign anything regarding this property due to the foreclosure issue and we do not want anything to damage our credit, etc. Any insight is appreciated!

 

[justalayman]

check the deed you recorded at the courthouse (register of deed office or whatever it is called in your state) to see if the deed was proper and legal.

the reason they are asking you to sign is; if the deed was defective, your husband still owned the property while you and he have been married. That gives you a legal claim to some of the value of the property. They simply want you to release any claims you might have.

before you sign anything, make sure your husband is not liable for any outstanding mortgage loan or taxes or any other possible liens.

 

[bugsmom18]

Thank you! I'll get a copy of what was filed with the recorder. How would we go about making sure he's not liable for mortgage or taxes? I do show the mortgage release papers when his ex re-financed the home to remove his name per divorce decree. And according to the assessor website, the taxes have been paid by the mortgage company. Maybe that doesn't matter since he's considered "owner" of the property still???

I appreciate your help!

 

[justalayman]

a mortgage is very different from title (ownership) and are not mutually inclusive nor exclusive. They are simply two aspects of real estate. Being on a mortgage does not impart any rights of ownership and being on the title does not impart any liability for any mortgage loan on the property.

How would we go about making sure he's not liable for mortgage or taxes?

if he is not on any mortgage loan involving the property, he is not liable for any mortgage loan. If he is on the title, he is responsible for the taxes along with any other person on the title. If the taxes are current, apparently somebody is paying them so I would not be overly concerned about it.

 

[bugsmom18]

Yes, the taxes are current so I guess I won't worry too much about that. I did pull out their divorce decree to check the real estate part and it says that she was to refinance in 30 days of their divorce (Feb 2005) and that my husband should be "held harmless" (i think was the wording, I don't have it in front of me though) from any debt and expenses associated with this property.

I'm not sure why the title transfer wasn't done properly but from what you're saying we'll be fine to sign the document for the closing to go through for ex. The real estate agent really just blew off our questions like it was no big deal.... but since she doesn't work for us, I hated to trust so easily. Thank you for the information!