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 tkfoye
Joined: 30 Jun 2008
Posts: 2
1.60 Dollars($)
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 Posted: Mon Jun 30, 2008 6:53 pm Post subject: Is novation still possible?? |
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| Is novation still possible to do? My ex-husband and I still own an investment property together. We put it up for sale to no avail and probably owe more than it's worth now. It's currently being rented to one of his friends, with the hope they will buy it in the future. However, they have a BK and foreclosure on their credit and it could be a few years before they could qualify to buy it. I just don't want to be financially responsible for it anymore. He can't refi the home into just his name and I’m scared that this is going to turn into a huge ugly mess down the road. Do you have any suggestions? |
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jameshogg
Joined: 20 Dec 2005
Posts: 925
Location: nevada
111.87 Dollars($)
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| Posted: Mon Jun 30, 2008 9:18 pm Post subject: RE: novation not possible - use rental income to repay loan |
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Hi Tkfoye,
Welcome to forums.
Neither refinance nor a novation would be possible here because your ex-husband will perhaps not qualify, given the fact that he has bankruptcy and foreclosure on his credit. So, is it possible for you to make monthly payments using the rental income? Then you can ask the ex-husband and his friend to accept a lease-to-purchase option so that after a few years they can buy the property and as of now, they need to make monthly rental payments so that you can repay the loan.
Thanks |
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tkfoye
Joined: 30 Jun 2008
Posts: 2
1.60 Dollars($)
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| Posted: Tue Jul 01, 2008 11:16 am Post subject: |
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| My ex doesn't have the BK/foreclosure, it's his friend that's renting the home. |
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Niicss
Joined: 03 Oct 2005
Posts: 1018
151.63 Dollars($)
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| Posted: Wed Jul 02, 2008 4:56 am Post subject: |
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Welcome Tkfoye,
His friend also cannot be able to refinance or get approve for novation because of the bad credit. He needs to improve his credit first. I feel if this a assumable mortgage and you are willing to sell the property to your ex-husband's friend then he may be able to assume the mortgage. But for that also he needs to improve his credit.
Let me know if you have further queries.
_________________
Good is the Enemy of Great. |
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sara
Joined: 05 Jul 2006
Posts: 1015
Location: New Brunswick, New Jersey
193.60 Dollars($)
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| Posted: Wed Jul 02, 2008 5:00 am Post subject: RE: |
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Hi guest,
Welcome back to the forums.
I agree with you here. If your ex's friend wants to buy the home now, it may not be possible because of the foreclosure and bankruptcy. So, for the time being, you can use the rental income to pay for the loan. Will it be enough for the payments?
Is your ex on the loan or the both of you? if you too are there, then possibly you can refinance into a lower rate and then it would be easier for you to pay off loan using the rent. I know you wouldn't like to continue with the payments but they can't buy right now. So, this looks to me as the only option.
Take Care |
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