Quit Claim to Remove Name Off of Mortgage

[jinjersey2000]

My question involves a mortgage in the state of: New Jersey

So, here is an interesting situation....I will try and provide as clear of details as possible:

1) My mother and I have a mortgage on a property in New Jersey
2) It is my mother's primary residence
3) She is on the deed to the property, I am not (I am just a co-signer on the mortgage)
4) We have attempted a modification to the mortgage through our lender to make the payments more affordable. Based on the combination of my mother's income (approx. $24K/year) and mine (approx. $100K/year) they have determined that the mortgage is "affordable" (their word not mine).
5) The mortgage is currently not "affordable" since I have my own bills, debts, etc....to pay.
6) The loan specialist at the lender has suggested that they retry the modification using just my mother's income.
7) The loan specialist has indicated that in order to do this, I need to remove my name from the "lien" using a quit claim. Again, I am not on the deed, just on the mortgage.
8) Is this a viable option? Is it even possible to do? What are the consequences?

Thanks for your anticipated help!

Great website and great work!

[flyingron]

Quit claim only transfers ownership. If you quit claim a property you don't own, nothing happens.
It will NOT have any affect on the mortgage. The only way to get off a mortgage is to either pay it off (refi or whatever) or convince the lender to release you (ain't going to happen).
Quit claims will not get you out of the responsibility for the loan. Quit claims do not affect liens.

The lender has every right to consider you as having the money to afford the loan. YOU agreed to pay it. They expect you to do so.

[jinjersey2000]

flyingiron - thank you for the response. I agree w you wholeheartedly. However, the LENDER is the one who suggested that I file a quit claim to take my name off of the "lien" (their words not mine) and they would try and redo the modification using just my mother's income. I had never heard of anything like this and was just wondering if my lender is screwed up or if this is really a viable option?

[jk]

I need to remove my name from the "lien"

ask them: what lien?


are you an actual co-borrower (like in the statements come in mom's and your name) or a guarantor? If a guarantor, while I cannot say I have heard of the guarantor having a right to a lien, I understand how it might be a possibility. Maybe that is the lien (actually not a lien unless you actually file a lien. It might be a basis for a lien. Not sure though) they are speaking of.


Still not seeing why they would require you to release any possible lien though, especially since a QC only transfers any current interest you have in a property. You actually have no interest to convey but only the possibility of a future interest should your mother default and you are called on to make payments on the loan. Releasing any current interest would mean releasing nothing.

Regardless, I do not see the purpose of it.

ask them to explain what they are talking about. I have never heard of anything like this before.