Take ex-husband off mortgage?
My ex-husband signed a quit claim deed, leaving him on the mortgage and home equity, which I’ve been paying on time for over a year now. Our divorce agreement stated I would get the house and I would assume payments. I found out my ex-husband is filing for bankruptcy and his attorney is going to get his name off the mortgage and home equity, which is fine with me, but will that force me to have to refinance and pay any costs out of my pocket, and if so, can I refuse?
My ex-husband is off the deed, he signed a quit-claim deed.
I was told by a friend since he wants his name off the loan he could get an assumption but he would have to apply.
Why would my credit be affected if he files for bankruptcy when I’m paying the mortgages?
I checked with my bank, it will cost me almost 00.00 to refinance just the first mortgage, I really can’t afford it. Shouldn’t he be responsible for 1/2 of these costs? So frustrating, I really feel screwed now in my divorce settlement.
September 4th, 2009 at 6:12 am
I don’t think so. A mortgage is like a bank account. If the legal relationship between you and your husband is dissolved, you have no legal rights to take his name off of anything, so essentially you will have to refinance in your own name. Do it before he files bankruptcy to preserve your own credit.
September 4th, 2009 at 6:12 am
you will have to refinance.
September 4th, 2009 at 6:12 am
You will have to pay fees to refinance, and you want to refinance because you don’t want to be tied to someone in bankruptcy, it will ruin your credit. Just think of it as a small price to pay for keeping your credit in good standing. Refi rates are low now anyway, so you are in luck.
September 4th, 2009 at 6:12 am
You will have to refinance to get it in your name - sorry
September 4th, 2009 at 6:12 am
Yes it will and you will have to pay the closing costs/points. The bank won’t just remove his name until they can determine that you can afford it on your own. Regardless of if you’ve been making the payments on time for the past year if your debt:income ratio is too high they won’t refinance.
September 4th, 2009 at 6:12 am
You got the house and he’s filing for bankruptcy? Was the split not 50/50? I think that you wouldn’t be able to refuse because you are doing better than he is financially speaking.
September 4th, 2009 at 6:12 am
i have NEVER in my life met a sharp attorney.. here we go again.. Divorce 101..
1. you should have never been allowed by the courts to keep a house that has a mortgage with a person you are no longer married to. you should have been given 60-90 days to produce a valid loan approval and close on YOUR new mortgage. or the courts should have ordered the home sold.
2. the cost to re-fi should have been spelled out in your divorce decree.
3. Sue your lawyer for the cost.
**the deed does not mean Jack Squat. so what if he signed it. a deed is not a mortgage. to me, in this case a deed is a worthless piece of toilet paper. ok, well it only means he can’t change the locks on your front door, that is the only credit due that i will give this worthless piece of paper.
*Look at him signing the deed this way.. "he now has no ownership interest in the house, but is obligated to a 30 year prison sentence. kind of like drinking an O’Doul’s, nothing like having the full bloated feeling without the high."
** ex husband has a mortgage ok, he is filing BK, ok.
his credit/debt is going to be flushed, (if it’s a 7) ok. hence, the mortgage that he is Legally required to pay, ok.
**personally if i were the ex husband i would sue You (you for holding his credit hostage) and your lawyer and his lawyer.
**only FHA loans are assumable. assumed by You not him. it is the exact same rate and term that is assumed.
is this an FHA loan?
September 4th, 2009 at 6:12 am
The bank holding the mortgage cares nothing about what is written here.
As long as you kep making the payments, the bank will not even worry.
But if you want your own mortgage, and hence, his name off the deed, you need to refinance alone.
September 4th, 2009 at 6:12 am
You would have had to refinance anyway. Banks don’t just remove people’s names from mortgages, even if your divorce decree says you get the house.
The only way to do this is for you to refinance the balance owing on the house and get a new mortgage in your name only.
September 4th, 2009 at 6:12 am
Refinance. If you have a good score your payments will be smaller.
September 4th, 2009 at 6:12 am
Would have been better to finalise all this during the divorce. Not after. To get his name off the mortgage, you both have to Discharge the existing mortgage. And YES, you will have to refinance to get a new mortgage. If the original mortgage was approved by considering BOTH of your incomes etc to qualify, and if your income alone is not enough to qualify for the new loan, your finance application may be declined. You may have to sell that house and downsize to a smaller cheaper home.You will be responsible for all legal/bank costs.
Definitely seek legal advice, and also use a mortgage broker to help sort it out for you, as they can tell you straight up which banks will play ball with you.