Worried About Quitclaim

Expert, localized Los Angeles answers provided by Heather Roy

Worried About Quitclaim
	Dear Ms Lank: My wife and I recently purchased our first home. Because she filed bankruptcy in 2005, she was unable to have her name on the mortgage. My credit is good, so my name appears on the loan note only. The bank said for her to have her name on the mortgage, I would have to submit copies of certain items, which includes a quitclaim deed. If I do this, what happens to my ownership? Will I still have it or will my wife get all ownership of the property? All I want is to have her name on the loan note in addition to mine. The bonus: we each want to get mortgage insurance so that neither will be saddled with mortgage debt if the other should pass. Need your thoughts on this important matter.

	I’m not sure why a bank would want your wife to be part owner just to co-sign the mortgage. But if you do sign a quit-claim deed giving her a share, it need not be a full half. The lawyer who helped you draw up the document could explain. If you’re doing all this just so you can both take out mortgage life insurance, think twice. It may be more efficient to shop around for inexpensive term insurance. Talk with an insurance agent about your options before deciding.
	Edith Originally published on June 6, 2006

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