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jennadams99 · Joined: 26 Jan 2010 Posts: 1 1.47 Dollars($)

I have just filed for divorce in WA State which has a mandatory 90 day cooling off period before a final decree of dissolution can be obtained. The property settlement agreement states that my husband will refinance the house and remove me from the note but my lawyer tells me that to execute the settlement document, I have to incorporate a quit claim deed. I know that this affects title only and I still retain all of the liability.

My question pertains to a refinance under HARP. My husband has qualified for the refinance with his own income but the lender (Wells Fargo, the 1st is a Freddie (damn them) and the second is a HELOC) ultimately declined the loan because we do not have a final divorce decree in hand.

Is there something in the HARP underwriting guidelines that says you absolutely have to produce this specific document, accepting no others, in order to refinance under HARP? Or is the LO just saying no because that's what she's instructed to say by her boss? Is there wiggle room in there?

If the applicant has a property settlement and a quit claim deed in hand, both of which are incorporated by reference only in the divorce petition but which are fully executed and _enforceable_ now, what more do they get by having a divorce decree? I have just made the house his separate property. What else do they want and why?

My husband completely accepts what the LO has told him. Now that his #1 plan has been foiled, he is telling me that wants to try for a loan modification instead, removing me in the process. A modification could take many months and may require him to go late. I am in full-on panic mode.

Your expertise on these matters is appreciated.

Niicss · Posted: Wed Jan 27, 2010 3:13 am Post subject:

I would suggest you to speak to your lender and inform him that you are signing the quit claim deed and making it your husband's separate property. Maybe the lender would agree to refinance the loan in your husband's name.

Also, you should note that a loan modification will not help you in removing your name from the mortgage. It will only help you in restructuring the loan.

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HARP refinance - life change/divorce