my husband bought a home and is the primary owner. His parents co-signed. We were told that there is no way we could refinance and have his parents assume the mortgage payments, title, etc and have his name taken off of the mortgage completely since they are only co-signers. Is this true? If so, what can we do to get his name taken off and into his parents name?
There is no rule that says co-signers cannot refinance in their names. If the loan is not assumable, your husband's parents cannot assume the mortgage. But they can surely refinance in their name and take over the responsibility of the mortgage, provided they qualify for a loan. Novation is a process through which one can be added to a loan. But in this economy, no lender would want to do a novation to remove your husband from the loan.
Casey Guest
Posted: Sat Aug 01, 2009 5:11 pm Post subject: divorce
Hi i got a divorce 2 years ago I gave her the house the divorce decree gave her a year to refinance and she hasnt been able to. She is late every month on her payments and no one wants to refinance her. my credit has been very affected. I don't know what to do since there is no way she is going to get refinanced and it seems by what i have been reading that its going to be hard for me to get out of the mortgage
Since your divorce decree states that your wife needs to refinance the loan, she has to. If she doesn't, she is in contempt of court. But given her bad credit score, it's unlikely that she's be able to refinance the loan in her name. A novation is also not an option in this situation. What you can do is, you can drag the matter to court once again and force a sale of the house. Once the house has been sold, the loan will be paid off and the excess money, if any, will be shared by you and her.
Step Guest
Posted: Wed Aug 05, 2009 7:05 am Post subject: two loans
I just refinanced my 1st home (FHA) and now in the process of purchasing a new home. just to find out that I can not carry two FHA loans. Can I quit deed it over to my dad & do a novation to be released off the 1st house so i can close on the 2nd
Lenders will not want to remove your name through a novation in this economy. Your dad will need to refinance the loan in his name to take your name off it. You can then apply for the mortgage and use your new home as your primary residence.
Thanks,
Jerry
Nena Guest
Posted: Sun Aug 16, 2009 2:36 pm Post subject: refinance
I am married and want to refinance the house on my name. If I get approved does my husband have to stay on the title? If so, will me missing a payment on the house, affect his credit as well?
If you're going to refinance the house in your name, it's important that you're on the title to the property. It's not necessary for your husband to be on the title along with you. His credit will be affected only if he co-signs on the loan with you. If he's not on the loan, his credit will not be affected in case of default.
Posted: Tue Oct 06, 2009 4:22 am Post subject: Novation/Quitclaim
Need some advice. My wife's father just passed away, leaving the house to his wife (and $72K mortgage & $15K LOC against house). She will be moving in with us as she cannot take care of herself. The house is hers. My wife has Power of Attorney. She will have enough income coming in to pay the mortgage and LOC. However, she does not need the house any longer and we really have no interest in the house other than protecting her interest. There are 4 kids - 2 other sisters and a brother. The brother wants the home for what is owed on it - but it is worth more than then $87K. Should we quitclaim the house to usand proceed from there? Should we use the Novation process and take over the payments?
The father would have wanted the house to be split between the kids, but that was under the assumption that she would pass before him. Unfortunately that did not happen.
Should we quitclaim the house to usand proceed from there? Should we use the Novation process and take over the payments?
If you and your wife do not have any interest in the property and do not want to keep it, there's no point in taking over the mortgage payments through novation. If you want to sell the house to your wife's brother for what is owed on it, you can do so. However, since you say the house is worth more than what is owed on it, you can try to sell it in the market. While most of the homeowners are finding it difficult to sell their houses due to drop in property value, you could be lucky enough to sell the house for more than the money owed. The loan can then be paid off and the excess money can be divided among the four kids.
WITCHBLADE - Lady Trucker Guest
Posted: Tue Oct 06, 2009 7:42 pm Post subject: quit claim on a land contract
My soon to be ex & I are on a land contract. I left november 3 2008. I want out of the land contract & my name off of the house. (Which he. Choose to keep). Now that I have filed for divorce(took this long to save for it) I am told he has damaged it & not paid the taxes. Now his cousin (who the contract is through) Want the back taxes and the missed house payment from me. And for me to sign a quit claim deed saying I will pay all this! I payed ALL the bills till the day I left. Including Novembers house note. I wasn't even there! Please help!?
You're on the land contract along with your soon-to-be ex. Both of you are responsible for the payments and the taxes. So, legally his cousin does have the right to collect the back taxes and missed payments from you, irrespective of whether or not you lived in the property. However, it is absolutely unfair to claim the entire amount from you. As you and your ex both were on the contract, both of you should share the liability of paying off the payments and taxes. His cousin cannot come after you alone.
Al Guest
Posted: Tue Oct 13, 2009 11:08 pm Post subject: Sale or transfer to children
My principal residence is in AZ.and i have second property in NC which still be on balance of $20,000 mortgage.I want to sale this house to one of my children /adults+ qulification for the mortg /. QUESTION...Which is the fastest best way,inexpensiv and ez to do this tranzaction?
You can sell the house to your children, but the existing mortgage will have to be paid off first. A novation could have been an inexpensive method of transferring the mortgage obligation to them. But given the current economic situation, I am not sure if any lender would do a novation. However, if the mortgage is assumable, your children can assume the loan from you. This will not cost them much. Otherwise, the lender may ask your children to refinance the loan and pay off the outstanding balance on the current mortgage.
jenkin7
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