How do I get myself off of a joint home loan in a uncontested divorce?
Chelle asked:
My situation is this. My husband and I are getting an uncontested divorce. We are ready to file and have a marital settlement. I decided to get a divorce 12/2/08 and moved out 2/7/09. When I moved out I was helping pay the bills for our joint residence until 6/09. When I moved into my own place at the end of June, 2009 my husband started paying the bills for our joint residence by himself. He has been having his dad paying the lender, Litton Loan, directly for the last seven months. My thought behind doing that was it might make his dad assuming my obligation on the loan easier. We tried to refinance the house into his name and his dad’s but we owe 270k on the loan and we are told it is only worth about 240k right now. I was thinking maybe a mortgage modification where we approach the lender and explain the situation and see if they will let his dad assume my portion of the loan. The lender isn’t going to lose out either way because he will pay the mortgage it will be me who ends up badly because my credit is tied up with this loan that is only five years old and is a 30 year loan. In the martial settlement we spelled out that he is keeping the house and that after the divorce is final I will be removing myself off title. I didn’t know if there was any special wording or information I should put in the marital settlement to help the case with the lender or if there was something else I could do. I would some input from anyone with experience in this area.
Lillian
My situation is this. My husband and I are getting an uncontested divorce. We are ready to file and have a marital settlement. I decided to get a divorce 12/2/08 and moved out 2/7/09. When I moved out I was helping pay the bills for our joint residence until 6/09. When I moved into my own place at the end of June, 2009 my husband started paying the bills for our joint residence by himself. He has been having his dad paying the lender, Litton Loan, directly for the last seven months. My thought behind doing that was it might make his dad assuming my obligation on the loan easier. We tried to refinance the house into his name and his dad’s but we owe 270k on the loan and we are told it is only worth about 240k right now. I was thinking maybe a mortgage modification where we approach the lender and explain the situation and see if they will let his dad assume my portion of the loan. The lender isn’t going to lose out either way because he will pay the mortgage it will be me who ends up badly because my credit is tied up with this loan that is only five years old and is a 30 year loan. In the martial settlement we spelled out that he is keeping the house and that after the divorce is final I will be removing myself off title. I didn’t know if there was any special wording or information I should put in the marital settlement to help the case with the lender or if there was something else I could do. I would some input from anyone with experience in this area.
Lillian
If 1 spouse takes sum of money the other the home, signs a contract, does the name have to come off the loan?
Little Blossom asked:
Our names are both on the loan. He is willing to allow me to buy him out. But I cannot refinance a new loan and be able to afford to buy him out. If we have a notarized contract that states he releases any interest on the home with the address and loan number, in exchage for the lump sum and some of the articles in the house will it be legal as a settlement?
We make an agreement, I keep the loan we have, give him a lump sum to release his repsonibility on the loan and I continue to pay the loan I have.instead of refinancing a new one just to get his name off the mortgage. If we have a contract that is notarized he releases responsiblity of our current loan and I take over payments, is this going to be a legal document is the question?
So far Randy has the best advice!
So far Randy has the best advice!
TODD
Our names are both on the loan. He is willing to allow me to buy him out. But I cannot refinance a new loan and be able to afford to buy him out. If we have a notarized contract that states he releases any interest on the home with the address and loan number, in exchage for the lump sum and some of the articles in the house will it be legal as a settlement?
We make an agreement, I keep the loan we have, give him a lump sum to release his repsonibility on the loan and I continue to pay the loan I have.instead of refinancing a new one just to get his name off the mortgage. If we have a contract that is notarized he releases responsiblity of our current loan and I take over payments, is this going to be a legal document is the question?
So far Randy has the best advice!
So far Randy has the best advice!
TODD