My ex-husband and I jointly own a home which he was awarded in the divorce. He is former military. The home was purchased with his VA loan. He was injured on the job and was unable to make payments on the home and thus the home went into foreclosure. A foreclosure date has not yet been set.
He is now recovered and back on the job. He is able to afford the monthly payments but not able to pay the amount needed to get the home out of foreclosure status.
He is interested in staying in the home and eventually refinancing in his name. To refinance, he was informed he would need to make a year of consistent payments. To stay in the home now so he can start to make these payments, he is interested in applying for a loan modification, which he would likely qualify for on his own. He has asked me to sign a quit claim deed form so that he can apply with his income only. I am not interested in having any ownership or responsibility for the home, but I understand that a quit claim form releases me only from the title and not the mortgage and that the bank could hold me liable for payments. Since the home is already is foreclosure status, am I really losing much of anything (my credit is already trashed because of the missed payments)?
What are all the possible consequences for me if he is grated the loan modification but defaults on the loan again before he is able to refinance in his name other than my credit?
Read more: What happens when I sign a quit claim deed form so my ex can apply for a loan modification as the home is in foreclosure?
