Refinancing After Divorce

malippincott · Joined: 21 Nov 2007 Posts: 1 1.55 Dollars($)

My ex-husband and I are still on a joint mortgage. Last spring I was preapproved for a mortgage, but the interest was higher than I would have liked due to the fact I still remained on another mortgage. My ex filed a Quit Claim Deed with our divorce papers, but didn't refinance as it did not benefit him. We both have excellent credit and income, so why do we have to refinance? Is there no way for him to qualify to have me removed from the mortgage without paying nearly $2000? If something were to happen to him, his family would get the house and I'd be stuck paying the mortgage. Is there no way to protect people anymore?

jasonredding · Posted: Wed Nov 21, 2007 12:16 pm Post subject:

Honestly No, unfortunatly until the note is paid off in full you will always be responsible. The benfit to him refinancing his mortagge is that you are no longer on it and you both can move on with your lives. Unfortunatly that is just how it works. The worst part of it now is that if you were quite claimed off and the title you have no say in what happens to the property but are responsible for the mortgage. If for some reason he misses oa payment or worse goes into forcluser you will be held responsible too and iot will severly impact your credit.

You need to get removed from that mortagge as soon as possible if you want to move on with your life.

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.77 Dollars($)

Hello Jason,

Welcome to the forums.

Malippincott, I think refinancing the mortgage in your husband's name will help you to move out of it, as Jason has already stated.

But there is another option. You may talk to your lender for a novation. In certain cases, lenders agree to a novation to remove one spouse's name from the mortgage, if the spouse remaining on the loan has a good credit.

Guest 0.10 Dollars($)

Hello,
My husband and I both want to get a divorce. However he pays for the mortgage. I am a student finishing my last year and a half of college and do not have a job. He wants to give me the house but I could not afford to keep it right now. So I was thinking that if he did give it to me I could refinance with a co-borrower (my mom) and with her help play the mortgage until the housing market gets better and then sell it and pay her back the money se put in plus interest. I am wondering if this sounds like a bad or good idea.
Thanks,
Julie

ckalvesmaki · Posted: Sun Dec 30, 2007 7:33 am Post subject:

What is the value of the home? How much do you owe on it?

Jessica

Yes, it sounds good but how's your credit? And your mom's? and are how are homes selling in your neighborhood? If the market is doing well, and continues to do well in the next 3-5 years, then you need not worry.

You may go for a short term (say 3/1 or 5/1 year ARM) so that you pay for the loan for the first 3 to 5 years at a fixed rate and then before the rate adjusts, you sell off the property and repay the entire loan.

However, go for the ARM, only if you feel you can afford to pay for any rising rate in case your home doesn't sell after 3 to 5 years and you might have to go for rate adjustment at least for a year or two before the home sales.

I hope it's clear to you.

Please feel free to get clarified.

Regards,

Jessica.

lisascherzer · Joined: 04 Jan 2008 Posts: 749 0.10 Dollars($)

A refinance is the only way to be removed from a mortgage.

Guest 0.10 Dollars($)

I am divorced, own a house in Texas, and need to get the mortgage in my name. I have a warranty deed on the property from my ex, but have not filed it due to my concern that filing will trigger the Due on Sale clause on the mortgage. At the time we divorced, we refinanced the house in both names so I could pay my husband his share of the home's equity. The loan has been in place for 3 years. Do I need to file the W/D and refinance in my name? If yes, do I refinance or get a home equity loan?
The mortgage company I have been talking with has sent me a Texas form relating to extensions of credit. My concern is that the entire form refers to Home Equity loans while I thought I was refinancing. Which do I do? What do I sign?

Thank you!

Lisa Thompson
.LisaT57@elp.rr.com

Email ID deactivated as per forum rules. Thanks.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Lisa Thompson,

Welcome to the forum.

How can your ex husband use a Warranty deed even though it is a mortgage property? As far as I know Warranty deed can only be used if the property is free from any kind of lien. Can you please shed a bit light on it.

"do I refinance or get a home equity loan? " I think you should refinance the mortgage on your name. First talk with your lender ASAP and then try to refinance the mortgage.

Best of luck,
Larry

jameshogg · Posted: Mon Feb 11, 2008 1:18 am Post subject: RE: refinance or equity loan?

Hi Lisa,

If you wish to have your name on the mortgage, you need to put your name on title as well as refinance the loan in your name. How long is it that you have received the warranty deed? There's a time limit within which you should file the deed so that it becomes effective.

A home equity loan implies you have a primary mortgage on your home already and in addition to that you are applying for a new loan against your home equity. But if the Texas Form on extension of credit speaks about home equity loans, may be you are doing a cash-out refinance and pulling some extra cash from your equity. That's why it is being referred as the home equity loan.

Thanks

lisascherzer · Joined: 04 Jan 2008 Posts: 749 0.10 Dollars($)

Hi Lisa,

A mortgage company should be able coordinate the transfer with the time of your closing. They should be walking you through this, instead of you trying to figure this out on your own.

enriko · Joined: 05 Mar 2008 Posts: 67 17.43 Dollars($)

i agree, you shouldnt be doing thing . They should be doing that:)

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