Quit claim deed and refinancing

[lilpetamoix]

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

Hello, I have a question regarding the use of quit claim deed and refinancing.

Currently, my dad and myself are on the deed. However, he would now like to get off the deed.

The question is, if I filed the quit claim deed and requested for a refinance, would the banks require the person on the original deed (my dad) to appear on the closing for refinance?

Please let me know.

 

[nextwife]

No, he can presign in front of a notary, and send it to the title company closing the refi with an instruction letter to record ONLY upon completion and funding of the refi taking him off title.

 

[lilpetamoix]

Thank you for the response, really appreciate it.

One more question... assuming that the quitclaim deed is recorded, will the closing docs still carry my father's name? or will it just be me from now on?

 

[FlyingRon]

Thank you for the response, really appreciate it.

One more question... assuming that the quitclaim deed is recorded, will the closing docs still carry my father's name? or will it just be me from now on?

You need to make sure the bank knows that you want the loan only in your name. They would typically assume all the owners will be subject to the new loan otherwise. A quit claim won't fix this in itself.

 

[lilpetamoix]

You need to make sure the bank knows that you want the loan only in your name. They would typically assume all the owners will be subject to the new loan otherwise. A quit claim won't fix this in itself.

Apologies, should I have clarified about my situation...

The loan is under my name, while the deed contains both my name and my father's name. I'm just trying to exclude my father from the refinancing process.

For example, when I was trying to refinance the mortgage with JPMorgan (this was before I considered quitclaim deed), the lender required my father to sign some documents during closing. Since my dad was very reluctant to sign anything related to mortgage, the process did not go through.

So in order to avoid that debacle again, I was hoping to get a quitclaim deed from my father. In theory, the mortgage lender then wouldn't require my father to be at the closing process since: 1) he's not on the mortgage to begin with and 2) the quitclaim deed would remove him from any requirement for refinancing.

The reason JPMorgan required my dad to sign documents at closing was because they said they needed all the persons on the original deed to close on the original loan. I was hoping the quitclaim deed would remove that requirement.

But I wanted to make sure that was the case before I moved on with another attempt at refi...

Please let me know and thank you for your responses!

 

[nextwife]

JUst advise your refi lender that the intent is to remove dad's interest through the closing process, and that the title company/closing agent will hold a quit claim to record at funding.

 

[tranquility]

Don't forget the gift tax return for 1/2 of the VALUE of the residence at the time of gifting.

 

[lilpetamoix]

Don't forget the gift tax return for 1/2 of the VALUE of the residence at the time of gifting.

Do quitclaim deeds automatically turn into a gift for tax purposes, if there's no cash/property exchanged?

 

[tranquility]

Of course not. I can give you a quit claim on your property right now and there is no gift as I have no rights in it. A quit claim gives you all the rights I have in the subject of the quit claim.

However, "my dad and myself are on the deed." Dad's giving you all his rights in the property. That IS a gift.

 

[lilpetamoix]

Of course not. I can give you a quit claim on your property right now and there is no gift as I have no rights in it. A quit claim gives you all the rights I have in the subject of the quit claim.

However, "my dad and myself are on the deed." Dad's giving you all his rights in the property. That IS a gift.

I did not realize that at all... thank you all for the great advices!

 

[roemer]

quit claim in divorce

Of course not. I can give you a quit claim on your property right now and there is no gift as I have no rights in it. A quit claim gives you all the rights I have in the subject of the quit claim.

However, "my dad and myself are on the deed." Dad's giving you all his rights in the property. That IS a gift.

I am preparing to refinance my marital home according to my property settlement agreement in my divorce. My exhusband will receive no equity from the home and no pay out. Will I be subject to a gift tax?

 

[CSO286]

I am preparing to refinance my marital home according to my property settlement agreement in my divorce. My exhusband will receive no equity from the home and no pay out. Will I be subject to a gift tax?

Why not create your own thread? This one is over a year old.