For most homeowners, a mortgage is their largest personal debt. The consequences of not paying a mortgage loan include foreclosure, credit damage and a possible lawsuit.
Joint Contract
Lenders determine mortgage liability by whose name is on the original loan contract. If you and your spouse applied for the loan together and the contract reflects both of your names, the mortgage is a joint contract and you are both equally liable. If, however, the loan is in your name only, your spouse isn't responsible for the payments unless you live in a community property state.
Features
Some states, such as California and Nevada, have special laws regarding the distribution of marital debt. These states are community property states. In a community property state, any property that either spouse acquires over the course of the marriage belongs to both parties equally. The same rationale also applies to debts. Your spouse, therefore, is liable for your mortgage if you live in a community property state and acquired the property after getting married.
Misconceptions
If your spouse is legally liable for your mortgage, she cannot merely fill out a quit claim deed and place the full burden of repayment on your shoulders. A quit claim deed will legally transfer property ownership, but doesn't exonerate the homeowner who has filed it from the responsibility of paying off the original loan.
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