Deed and Record provides documents and service to bridge the ownership transfer from the Superior Court to the County Recorder.
The court awards you the house. But your ex-spouse is still on title as the owner and the borrower. An interspousal deed and refinancing are required.
An interspousal deed and refinancing are required for a clean break in a divorce. The deed removes the ex-spouse as an owner. Refinancing may be delayed due to credit issues or a low interest rate.”
HUNTINGTON BEACH, CA, USA, February 8, 2024 /EINPresswire.com/ -- The settlement agreement is signed and filed with the court. The court awards the house. However, the ex-spouse is still on title as the owner and the borrower. An inter-spousal deed and refinancing are necessary for a clean break between ex-spouses.— Mark W. Bidwell
Change Owners by Deed: A deed is a paper document. In this document, the owner is the grantor, and the new owner is the grantee. The deed has mandatory formatting and information requirements.
Examples of required formats are on the first page, the upper-left-hand corner must be blank, and the mail tax statements to address must be at the bottom of the page. Examples of required information are names of the parties, legal description, and property tax number.
The ex-spouse, not the owner, signs the deed; a notary must acknowledge the signature. Record the deed with the county. The change of owners is now of public record. The former spouse is removed as owner but remains as a borrower.
Refinance: The bank will not remove the ex-spouse as owner. Federal loan prohibits the bank from calling the loan entirely due and payable because of a divorce. So, the status quo remains. The only way to remove the non-owning spouse is to refinance the loan. The owning spouse takes out a new loan on the property and pays off the old loan.
In reality, this has many problems. The owning ex-spouse may not qualify for a new loan. The loan may be at a very favorable rate. So, the non-owning ex-spouse remains the borrower and relies on the other ex-spouse to make the payments. It is in the best interest of both parties to keep the loan current to avoid foreclosure and destruction of credit scores.
To remove an ex-spouse as an owner, you need a inter-spousal deed and to record the deed with the county. Recording updates the public records of real property owners. Removing a spouse as an owner does not remove them as a borrower. That requires a new loan from the remaining owner.
The sole owner should consider a living trust. A living trust avoids probate on the death of the owner. This saves time and money for the heirs.
This press release provided by Mark W. Bidwell, a licensed attorney in California. Phone number is 714-846-2888. Marketing is by website DeedAndecord.com. Office is located 4952 Warner Avenue, Suite 235, Huntington Beach, CA 92649
Mark W. Bidwell
Deed and Record
+1 714-846-2888
email us here
