DEED CO-SIGNER FLYS THE COOP

[aleene]

My daughter's fiance broke their marriage engagment and vacated their house. Both names are on the deed, but fiance refuses to pay anything. It's been months, and she put the house up for sale. She is struggling financially over this and is only hanging on to the house with the help of her father every month. They re-financed a couple of years ago for over the mortgage value to pay off his truck, so she really got the short shift. Any recourse at all to keep him from profiting on the sale of the house?

[Eagle]

Do they have any equity in the house. And, considering how bad the real estate market is, could they break even if they sold?

[Eagle]

You will need him to sign the Deed if you are planning on selling the house. So, if you plan to sell the house you should be nice to the guy until the house is sold. Keep accurate records of all the expenses made to maintain the house until it was sold. Then you can bring a lawsuit against the ex-fiance for his share of the expenses.

[aleene]

Thanks for your reply. He verbally stated, before he left, that he would not leave her hanging financially, and did not want any share of the house sale. Well that didn't last long. Small equity, small profit if house sells for what realtor suggests, but a little money for her to get back on her feet. She is also paying for all utilities, and is hanging by a thread to keep away from foreclosure.... without our help each month she would lose the house. Will take your good advice.

[rockgarden]

You do not have to wait until the house is sold!!!!! At any time, the fiance can give your daughter a "Quit Claim Deed." It is just a one page deed by which he signs any beneficial interest he may have in the property over to your daughter. File the quit claim deed with the county and it will essentially have the effect of removing him as an owner. Then he will not be a party to a future sale.

[Eagle]

They should check the mortgage documents and see if there is a clause restricting any transfers without the consent of the mortgage company. It may trigger a "due on sale clause" and might cause title insurance problems later on.

[rockgarden]

I understand the "due on sale", but what problems could there be with title insurance?