[WSBARP] Post-Divorce QCD Catch 22

[Patrick McDonald]

I agree with Joseph. The divorce decree should transfer title upon entry with the court and is a public record.

Patrick

_______________________
Pody & McDonald, PLLC
1200 Fifth Avenue, Suite 1410
Seattle, WA 98101-3106
T: 206-467-1559
F: 206-467-4489

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Joseph McIntosh
Sent: July 30, 2021 12:25 PM
To: cole-gilday at stanwoodlaw.net; WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Post-Divorce QCD Catch 22

I would think the divorce decree, especially if recorded, would effectively evidence a transfer the real property so as to satisfy the lender’s concerns.  I routinely encounter refinances following divorces where there was just a decree awarding the new borrower title, but no QCD.  I don’t think the county recorder can prevent you from recording the court order.

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Ryan P. Coon
Sent: Friday, July 30, 2021 12:02 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: [WSBARP] Post-Divorce QCD Catch 22


Listmates,

I've got a client needing to record a QCD to separate property post-divorce but is running into what seems to be a "catch 22" problem so I'm looking for some creative solutions.

Client by divorce decree is awarded the family home and thus needs to record a QCD from ex-spouse to separate the property. However, there is a large amount of outstanding property taxes due (several years worth) and the county (Island) is refusing to record the deed without the taxes being made current. Client doesn't have the funds to bring taxes current so is seeking a loan to pay the taxes. However, client is having trouble procuring a loan because the bank is requiring signature of ex-spouse since ex-spouse's name is on the property but ex-spouse will not sign off on the loan.

Thus, client can't record a QCD because they don't have the money to pay the taxes but their having trouble getting the money to pay the taxes without first recording the QCD.

Any thoughts or creative work-arounds for this would be much appreciated, thank you.
--

Very Truly Yours,
Ryan P. Coon
Law Office of Cole & Gilday, P.C.

10101 - 270th St. NW
Stanwood, WA 98292
(360) 629-2900 (Telephone)
(360) 629-0220 (Fax)

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