Quit Claim Deed - Refinancing Question

[roar_2006]

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


My ex-fiancé and I purchased a home several years ago and split up shortly after. The housing market in that area tanked and the bank wouldn't refinance until the assessed value went above the loan amount. I left the property and fortunately she has been paying 100% of the mortgage payments on time.

She recently contacted me and indicated that I needed to sign a quit claim deed in order for the bank to come out and reassess the property. I obviously do not want to sign a quit claim deed until I know the refinancing is 100% in order. She is married and I am assuming that when she refinances her and her husband will be going through the process. I want to make sure that the best option for me is to sign the quit claim deed at closing if/when she does the refinancing. I don’t want to sign anything beforehand and lose any leverage I have.

My other question that comes into play is the gifting tax that I read about. There is no money exchanging hands and I would be giving up my interest in the house. All that I care about is it not being liable for the mortgage but I obviously don’t want to be taxed. How exactly does this work? Would there have to be something drawn up that says she is responsible/accepts the gift taxes if it is applicable to my situation?

I sincerely thank you for taking the time to look at this and for any of your input/advice.

 

[tranquility]

The quit claim can be a part of the loan refinancing papers. They are refinancing the whole amount and you can have the quit claim be part of escrow as you are selling your half for half of the amount owed on the mortgage. (Your portion.) That is fair and gives you a better deal than you would get if you went to partition to fight this thing. There, she would gain more ownership for certain parts of the mortgage paid as well as a few other things. As it is right now, she could sue you for some of the amounts paid.

 

[LdiJ]

The quit claim can be a part of the loan refinancing papers. They are refinancing the whole amount and you can have the quit claim be part of escrow as you are selling your half for half of the amount owed on the mortgage. (Your portion.) That is fair and gives you a better deal than you would get if you went to partition to fight this thing. There, she would gain more ownership for certain parts of the mortgage paid as well as a few other things. As it is right now, she could sue you for some of the amounts paid.

And...there would be no gift tax issues as there would be no gift.

 

[roar_2006]

And...there would be no gift tax issues as there would be no gift.

Thank you both very much for responding. I am very grateful and appreciative for the clarification. I will do the Quit Claim as part of the closing. Have a great weekend.