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Novation - Transfer mortgage to another individual

Posted on: 18th Nov, 2006 06:31 am
What is novation? Can anyone define it for me...
wow...tired and curious...

i cannot explain why bank of america would be requiring you to supply income and debt data on a non-borrowing spouse. might it have something to do with community property (assuming you're in one of those states)?

but curious...i don't get your reference to a quit claim deed in this situation, either. as for ratios...they are critical in lending. we don't want to see that you have an excessive amount of debt in relation to your income, and it's that simple. analyzing that is a matter of calculating how much debt is outstanding and dividing by income to calculate that ratio. with your credit score, there'd be a higher tolerance for a high ratio, but why your spouse would need to be involved is a mystery to me.
Posted on: 24th Feb, 2010 10:04 am
Hi, my boyfriend has been divorced for over 2 yrs. He and the ex owned a home and a cabin. He got the home and she the cabin. He sold the home and purchased a new one. She's been unemployed for 3 yrs, been telling him she's making cabin payments, refuses to sell it and cannot be approved for refinance. He signed the quit claim against advice from a mortgage banker. His credit has now gone from excellent to very weak in the span of 6 wks. What are his options?
Posted on: 08th Mar, 2010 01:11 pm
his options don't seem to be too promising. if the divorce decree stipulated that she had to refinance, he could take that to the court and have an order issued, but with poor credit that isn't going to happen. i suppose that he might have a way in which to petition for a sale, but that's far fetched as well, i think, since he is no longer an owner of the property. he can make payments and catch up on her mortgage, thereby improving her potential as a refinance candidate, too; but i'm sure that's not paramount on his list of things to do. and, of course, with unemployment in her case, nobody would be able to do a refinance.

the best thing to do at this point is to speak with a good attorney to get some advice on how to handle things.
Posted on: 08th Mar, 2010 01:19 pm
Hi and thanks,
I will try to be as brief as possible. My husband and I are in quite a mess. His ex-wife agreed in the final divorce agreement to pay on a vehicle that she has since defaulted on, refinance the mortgage in her name solely, ( zero attempt), pay off IRS (2K) and growing ,plus multiple credit cards.

She has now put us in debt over 20K. Husbands ex-wife refuses to make payments and/ or set-up agreements to payoff said debts that she is legally bound to comply with.

Husband tried to take her back to family court and charge her with contempt but judge (???) ruled that it was a civil matter (???) now.

What if any "moves" and or "tricks" can my husband do to free himself of all of her malice, with forethought?

Thanks,
tickedoff
Posted on: 11th Mar, 2010 10:56 am
find a lawyer who knows tricks and moves; other than that, i know of no ways in which to force someone's hand.
Posted on: 11th Mar, 2010 01:30 pm
I am getting a divorce and I will not be able to refinance my home because of my credit rating. Is there any other options??? What if the house stays in both our names and I show proof that I have made all the monthly payments when its paid off? I want to keep my home but if I can't refiance what am I to do?
Posted on: 08th Apr, 2010 02:39 pm
hi korr,

a refinance is the only way to remove your spouse from the mortgage. if you give up the property through a quit claim deed, it will just transfer the ownership. it will not transfer the responsibility for the mortgage. if you can make sure that you will stay current on the mortgage payments, there will not be any problem for either you or your spouse. but as soon as you fall behind on your payments, it will affect your spouse's credit scores and his/her chances of getting a new loan.
Posted on: 08th Apr, 2010 11:23 pm
My soon to be ex has said he would sign a quit claim deed for the ownership of the home. That way his name and mine would stay on the mortgage although I would be making all the payments. At the end of the morgage would I then be the sole owner of the home? We figured that I could keep the home this way since i have no way to refinance.
Posted on: 12th Apr, 2010 02:06 pm
To Korr,

Once your soon-to-be ex signs the quitclaim deed, he will release all his ownership rights to the property. You will have the title solely in your name. However, the mortgage will remain in both you and soon-to-be ex-husband's name. As long as you keep making the payments on time, the lender will not have any problem. Once the loan is paid off in full, you will have a free and clear title to the property.
Posted on: 13th Apr, 2010 12:43 am
This is great news about the title. Does this also apply to the vehicle that is in his name? He doesn't mind leaving it in his name also just so I make the payments. We were planning on doing the divorce ourselves so would we just write in the final divorce the agreement for the quick claim for the house and vehicle? We get along very well and didn't want to have to pay a lawyer when we could do things ourselves. Also, the clerk of court office in our small town told us that they would advice us along the way.
Thank you so much for your time and advice
Posted on: 13th Apr, 2010 10:59 am
I am the co-borrower on my sister's house .I have my own house and my income has is half of what i used to make I dont want if she cant pay her mortgage they take my house what do I do to get off her house as a co borrower
Posted on: 22nd Apr, 2010 05:56 pm
Hi reenie!

Welcome to forums!

You will have to ask your sister to refinance the loan in her name. Once he refinances the loan in her name, then you would be released from the liability of paying off the mortgage dues.

Feel free to ask if you've further queries.

Sussane
Posted on: 22nd Apr, 2010 10:48 pm
Hi All,
Just been to a lawyer and he suggested to try a novation (our mortgage is with Wells Fargo). I understand that it is not common for a bank to do it as it is not really in their interest (it is better for them to be able to go after 3 people than 2). What is the best way to "argue" the case?
Here is my situation: My husband and I bought a large house together with a 3rd person (at the time, friend). He moved out of the house after a year and told us that he does not want to be an owner anymore. As he is concerned about his credit, he does not want to do a quit claim. He demands a refi, but my husband and I can't refi because there is not enough income coming in from full time, permanent employment. We both have jobs: part time, contractor, temporarily type of jobs. BUT we also have rental income that we receive from renting 4 rooms in the house (we split this with the 3rd owner). We rented 3 of these rooms since we bought the house and planning to do so in the future. We never been late with paying mortgage. The argument I am thinking to make is that if the bank agrees to a novation my husband and I would receive ALL the rents (currently the amount is MORE than the mortgage per month). We don't have a problem paying the mortgage now but by us taking over the house and all the income paying the mortgage would even be easier! Also, our 3rd owner is definitely a liability for us, but perhaps we could make a case why he would be for the bank too (if he stays to be an owner). He does not want anything to do with the house, would not want to put any time or energy into it whatsoever. He would probably not be able to pay 1/3 of necessary expenses (e.g. boiler stops working etc) as now he is a full time student (as far as I know).
I am just brainstorming....if anyone has any comments, suggestions or experience with novation that would be great!!
Thanks!
Posted on: 26th Apr, 2010 10:27 am
my soon to be ex husband is telling me he wants me to sign the deed so i can be off the house , that he is letting the house go in to foreclosure . That if i don't sign him and his lawyer will take me to family court to pay off half the debt of the house. Can that happen?
Posted on: 26th Apr, 2010 05:09 pm
Hi,
3 years ago I did a quick claim to a property that the owner's wife passed away and left him as the administrator. He lives in another state and wanted me to have the property. The claim was filed at the county court house and I have been paying the mortgage thus far. The previous owner did a modification and was denied not the owner that lives in the unit which is myself. I then was mailed a loan assumption from the mortgage company and told to complete so that they would have my personal info on file then I would be able to do modification on the account. I just found out they turned me down because I am not family member. I have the quick claim deed in my name filed, what do I need to do?
Posted on: 06th May, 2010 06:14 pm
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