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#2118253 - 02/14/17 09:58 PM Mort Mod/quitclaim deed
Onehotidea Offline
Junior Member
Joined: Jul 2015
Posts: 36
Minnesota
I have a husband, wife and son all on a mortgage/note which originally was for the purpose of student housing. They had purchased the home for their son to live in when attending college. Now the son has graduated and moved out of state. The husband and wife are still using the home as rental income but would like to release the son of any liability from the note and mortgage. What is the best way to release the son without rewritten the whole loan if any?? Any input would be great.

Could I get a quitclaim deed signed by the son and file a modification along with that as long as we get it reporting correctly to the credit bureau?

Thanks

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#2118261 - 02/14/17 10:23 PM Re: Mort Mod/quitclaim deed Onehotidea
crcmnot Offline
Gold Star
Joined: Sep 2016
Posts: 351
I could be incorrect but a QC deed will release his interest from the title to the real estate but he would still be obligated on the loan unless there is a refinance of the loan to mom and dad only

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#2118428 - 02/16/17 02:21 AM Re: Mort Mod/quitclaim deed Onehotidea
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,395
Whether or not the parents take the son off title has no bearing on your ability to release his liability on the note.
They may want to keep him on title for estate planning purposes, etc.

You need to contact counsel about the proper way to release an obligator on a mortgage.

Personally, we would refi the loan and verify the parents' credit, etc, rather than just modify.

If the son remained on title, we would just have him sign off on the new mortgage the same way we would have a non-borrowing spouse on title sign off.

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#2118798 - 02/17/17 08:43 PM Re: Mort Mod/quitclaim deed Onehotidea
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
Rather than go thru the time and effort of a re-fi we have a form, created by our legal counsel, that releases someone from the debt/mortgage, which form is also signed by all remaining parties. We don't use this often, but it is handy to have when needed.
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#2120086 - 03/01/17 06:49 PM Re: Mort Mod/quitclaim deed Onehotidea
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,395
My only concern would be verifying that the remaining parties are credit qualified to carry the debt.

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