Legal Question in Real Estate Law in California

Re: Quit claim deed

Lenders always ask for a quit claim deed to be signed by the spouse during a purchase of refi when there is only one person on the loan.

However, she can then sign a grant deed on the same day, granting the property back to the two of you. The downside of that is that if your credit could expose you to judgments or other liens, they could affect the marketability of the house later.

Another alternative is for her to put the house into a trust, which would make both of you trustees, and you, her and your children the beneficiaries.

Re: Quit claim deed

I agree with the prior comments. If you and I were discussing this matter in my office, I would also ask questions about whether you have made any contribution to the down payment and/or the monthly payments on the prior mortgage, how long you've been married, whether you both work, how much you each make, etc. to determine the community property interest in the house, if any. There may be a distinction between what is legally possible and what is fair as to ownership, inheritance expectations, etc.

I would also suggest that you consider seeing an attorney who specializes in estate planning to inquire about accomplishing your joint financial goals including credit repair and making sure that the children get the house with minimum tax consequences and minimum hassle.

It may cost a bit now, but will pay big rewards in the future.

Re: Quit claim deed

There are a number of issues. Deeding back into your name may be a violation of the loan agreement. You may want to have a contract with your wife so that your rights are clear. Additionally some estate planning, for example a trust. A trust may not be enough as it can be amended.

Joel Selik

800-894-2889

www.4thelaw.com

www.taxworkout.com