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 sayhimarcy
Joined: 20 Oct 2009
Posts: 2
2.00 Dollars($)
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Posted: Tue Oct 20, 2009 10:19 pm Post subject: Does my divorce have to be final to assume loan?
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Please help me. I live in California and am going through a divorce. Even though my husband bought the condominium two months before we got married in 2000 and my name is not on the loan or the title, he has agreed to treat this as community property. This is because he does not want the property and is hoping I will assume the loan (he is unemployed).
My husband and I have been working with a mediation attorney to reach a Marital Settlement Agreement, and it made sense to us for me to apply for the loan assumption BEFORE filing the marital settlement agreement with the court and giving my husband the money for his share of the equity. Because what if I gave him the money (approx. $16K) and didn't get the assumption and he refused to give the money back? The lender is Chase, by the way.
When I talk to the Chase Loan Assumption department, they assure me that I don't need a final divorce decree but the loan processor I'm assigned to insists that I do. Out of frustration, I got in touch with my loan processor's supervisor and he basically told me whether or not my assumption will go through without a finalized divorce decree "depends" (on whether there are children, which there are not, among "other things"). I have since gotten a letter from the loan processor saying that if I don't provide certain documents including the divorce decree and evidence that I have paid "the seller" by Nov. 2 my file will not be given further consideration. First of all, even if the Marital Settlement Agreement was signed and filed in court today there is no way it would get court approved by Nov. 2. Secondly, when I talked to the LP about how I should proceed given her advice that "no investor will allow the transfer before your divorce is final" she advised AGAINST paying my almost ex the near $16K yet. Now she's asking for proof that I have? Hello?
The reason I don't just "walk away" is that I'm afraid my husband will then go after me for alimony because he'll be forced to pay the mortgage without a job. If it weren't for that, I would walk away at this point. This is really stressing me out. Let's say I have the attorney file the MSA, the court approves it, I give my almost ex $16K and then I get turned down for a loan assumption? Then what? As it is, if I get turned down, we'll have to spend more money with the attorney to come up with a new agreement. Very frustrating....as if the process of getting a divorce isn't frustrating enough.
Why is my LP making things so difficult? There are no kids involved, I have excellent credit, a good job, a car that's paid for and no debt. This should be easy. Does one's divorce really have to be final in order to assume a loan? What can I do here? Do I even want to be dealing with Chase? Please help... |
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jveenstra
Community Expert
Joined: 10 Nov 2008
Posts: 1256
Location: River Edge, New Jersey
264.15 Dollars($)
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Posted: Wed Oct 21, 2009 9:22 am Post subject: Divorce
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It is interesting that your husband has a mortgage that is "assumable". not many mortgages are assumable these days, unless, the existing mortgage is an FHA mortgage, those are often assumable.
I can not speak for the loan processor, but, I will take a stab at what he/she is concerned with.
When you get a new mortgage or if you are assuming a mortgage, you must qualify to be able to do so. Besides credit, etc, one of the qualifcations that you must meet is the allowable debt ratios---total monthly debts divided by total monthly income.
One of the monthly debts for which you could be responsible is child support or alimony. There are no children, so, no problem there. You mentioned yourself that your husband might hold out for alimony. Until there is a final divorce dercree, the loan processor has no idea if you will be required to pay alimony, and, if so, how much for how long.
The loan processor has no idea what to include in the calculation of the debt ratio--nothing or something. If something, is a lot monthly or not so much.
Ask the loan processor if that is the only concern, and, if so, is there some interim legal document that would suffice to meet the requirement that your soon to be ex will not get any alimony.
_________________
John Veenstra, Sr Mortgage Consultant
Approved Funding Corp
Licensed NJ NY CT PA
201-833-0123x278
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thewretched022
Joined: 21 Oct 2009
Posts: 18
3.29 Dollars($)
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jveenstra
Community Expert
Joined: 10 Nov 2008
Posts: 1256
Location: River Edge, New Jersey
264.15 Dollars($)
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