Removing Spouse off title but still have a loan balance

[Soun Maokhamphiou]

Dear TUG BBS Members,

This is my first post... here goes.

I currently own at HGVC Las Vegas Boulevard. My wife and I financed the purchase as co-owners. Both our names are on the Deed. She wants to relinquish all financial responsibility and have her name removed off the title. I want to be the sole owner on the deed and the only one financially responsible for the loan. Has anyone ever done this?

Sincerely,
Sean

 

[vacationhopeful]

Several points...
It is unlikely any developer will remove a person from a loan contract ... 2 makers on the loan increases the likelihood of the party (holder of the loan) that getting paid.

The loan most likely has been SOLD in a packet to a 3rd party ... paying it off is the only way to get that loan out of the packet (a revenue stream to this 3rd party).

You are most likely paying a HIGH interest rate (as this will mostly be an unsecured loan) ... taking out a loan via another source would get your wife off the loan (and you also must take her off the ownership/deed also).

So pay off the loan in full. Re-deed the ownership in your name only. And it takes cash. And refinancing a single timeshare is difficult ... the developers had clout, assets and big numbers to get financing. YOU are looking for a consumer loan.

 

[Soun Maokhamphiou]

Thanks for the quick reply. I'll pay it off and have her sign the quit claim deed.

 

[vacationhopeful]

Get her to sign an agreement that YOU are paying off the loan and she is agreeing that you will be the sole owner and SHE will sign a "quit claim" deed.

Sounds like you are trying to split assets and as a co-owner, you can certainly JUST pay off the loan BUT she will still own (have claim) to her right of 50% ownership.

 

[dioxide45]

She could always sign a quit claim deed, but that won't remove her name from the note or mortgage and it probably won't be recognized by the developer until the loan is paid in full. Even still, if she were not on the deed, depending on the state your in, she might be considered to have ownership interest in the week. Though I suspect this probably only comes more in to play with traditional real estate. When my in laws inherated a property, my MIL transferred the deed to her sister. My FIL had to sign the deed even though he did not inherate any part of the property. It belonged to my MILs mother. My FIL was signing away his dower rights.

Dower rights are the interest that a person has in real property owned by his or her spouse. If one person owns property during a marriage, his or her spouse has a 1/3 life estate interest in that property.

California is even trickier as a community property state. Everything you own and everything you owe during the marriage is split 50/50.

 

[Talent312]

California is even trickier as a community property state. Everything you own and everything you owe during the marriage is split 50/50.

For community property states like CA and Nevada, I've no idea how a QCD between spouses might affect their respective property rights or inheritance. But it would prolly would be enuff to get HGVC to take her name off it's membership rolls (once the loan is paid-off). You could get her signature on the deed b4 paying-off the loan. I suggest contacting HGVC's title-office at 877-764-4482.
.

 

[GT75]

Hilton also charges to change the title. It is different for different properties.

 

[1Kflyerguy]

For what its worth HGVC refused to allow me to re-title our unit into our trust as long as we had the loan outstanding. In that case it was my wife and i were the trustees and on the loan, so not even a change in the individuals involved.

 

[Janann]

For what its worth HGVC refused to allow me to re-title our unit into our trust as long as we had the loan outstanding. In that case it was my wife and i were the trustees and on the loan, so not even a change in the individuals involved.

Probably because in the event of a loan default, it is a lot easier to sue the owners as individuals rather than an owner that is a trust. The lender wouldn't have access to much information about a trust, but it is pretty easy to figure out if it is worthwhile to pursue a case against an individual.

 

[1Kflyerguy]

Probably because in the event of a loan default, it is a lot easier to sue the owners as individuals rather than an owner that is a trust. The lender wouldn't have access to much information about a trust, but it is pretty easy to figure out if it is worthwhile to pursue a case against an individual.

I am sure that is correct. We have our house in our trust as well, and anytime we refinance we have had to take it out of the trust for the loan to fund, but then the lenders never have a problem with us putting it back into the trust. Maybe HGVC is stricter because they also service the loan. Not sure, but since we have paid off our T/S loans its not an issue for us any longer.

 

[rapmarks]

I am sure that is correct. We have our house in our trust as well, and anytime we refinance we have had to take it out of the trust for the loan to fund, but then the lenders never have a problem with us putting it back into the trust. Maybe HGVC is stricter because they also service the loan. Not sure, but since we have paid off our T/S loans its not an issue for us any longer.

I am curious, how do you take it out of the trust, and then put it back in? Do you have it re titled each time, do you reregister it? Isn't this costly?


Sent from my iPad using Tapatalk

 

[dioxide45]

I am sure that is correct. We have our house in our trust as well, and anytime we refinance we have had to take it out of the trust for the loan to fund, but then the lenders never have a problem with us putting it back into the trust. Maybe HGVC is stricter because they also service the loan. Not sure, but since we have paid off our T/S loans its not an issue for us any longer.

This certainly shouldn't be necessary. A lot of people have homes in a trust that they have a mortgage on. Many lenders will just require you to sign the note as an individual and trustee. So you are still individually responsible for the debt. Though the mortgage will be signed only as the trustee.

 

[1Kflyerguy]

I am curious, how do you take it out of the trust, and then put it back in? Do you have it re titled each time, do you reregister it? Isn't this costly?

Sent from my iPad using Tapatalk

Correct, you re-title it with a new deed and filing with the county each time. I have never personally had to pay for this, as the mortgage broker covers the expense.

This certainly shouldn't be necessary. A lot of people have homes in a trust that they have a mortgage on. Many lenders will just require you to sign the note as an individual and trustee. So you are still individually responsible for the debt. Though the mortgage will be signed only as the trustee.

I agree completely, and my estate attorney also agrees, however whenever i have protested. The lenders state that i am free to find a different lender, and that if want the fund them, its a requirement. So in the end, its a few extra documents to sign and in my mind a needless step, but its works.

 

[liongate88]

Hi, If I want to remove my wife off the deed for HGVC ownership in the future and have it recorded to the county myself. Do you have to pay another transfer fee and activation fee to HGVC? Thanks

 

[Talent312]

Hi, If I want to remove my wife off the deed for HGVC ownership in the future and have it recorded to the county myself. Do you have to pay another transfer fee and activation fee to HGVC? Thanks

Not likely, since you are remaining as an owner.
But call HGVC for a better answer than our armchair quarterbacking.

BTW, you are allowed to start a new thread than reopen one from 2017.
.