Doesn't matter how you phrase it. the state wants the transfer tax on the half of the mortgage related to the half of the property they gave up. It doesn't matter that unless the mortgage is refi'd, the person who gave up their interest in the property is still 'joint and severally' liable for the entire debt; not just one-half of the debt.
I advise my clients that they should never sign over their interest in a property unless and until the property is refinanced so that the debt is no longer in their name. That is, unless they file bankruptcy and discharge the debt.
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Marianne Auriemma Esq.
Maywood NJ
(201)712-9663
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Original Message:
Sent: 02-04-2013 12:04
From: Leslie Farber
Subject: quit claim deed
But what if the grantee remains obligated on the mortgage? Should that change things? Someone else had recommended including language in the deed stating that the grantor conveys all of the interest, right, title, interest in the premises subject to the mortgage from XYZ Bank, dated ____, recorded in Book # 123, Page 345. I wonder if that will change anything.
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Leslie Farber Esq.
Montclair NJ
(973)509-8500
Original Message:
Sent: 02-04-2013 11:46
From: Felice Londa
Subject: quit claim deed
Leslie,
The concept is that the person remaining on title is assuming the full value of the mortgage. Therefore, there is consideration paid for the transfer (i.e. obligation of the debt) and therefore, the State gets its money.
F
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Felice Londa Esq.
Elizabeth NJ
(908) 353-5600
Original Message:
Sent: 02-02-2013 14:52
From: Leslie Farber
Subject: quit claim deed
Not what I what i wanted to hear, but thanks. I still wonder why.
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Leslie Farber Esq.
Montclair NJ
(973)509-8500
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