Real Estate ?.how do I remove myself from joint home loan in 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.
Ramon
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.
Ramon
Comments
3 Responses to “Real Estate ?.how do I remove myself from joint home loan in uncontested divorce?”
Leave a Reply
Josephine
Hire a lawyer for an hour and have them re-write the deed. Laws differ in each state but that is how I was able to be put on and eventually taken off a deed. As far as the bank is concerned you are still liable for the debt until your ex husband refinances the home and officially has your name removed from the financial obligations of the home
Carlos
You are stuck if your soon to be ex hubby and ex father in law cannot get a mortgage on this place together. That is the ONLY way you are going to be excused from this obligation. Doesn’t matter what a lawyer or court says in the divorce decree. The bank looks at it as you two are jointly and separately liable for the loan. Period. Also, do NOT take yourself off the deed until they can refinance! Once you take yourself off of there, you have LOST all leverage! Where is your lawyer? They should have told you that much! LOL
Marie
He must refinance the house into his name and at closing you will sign a quit claim deed to sign it over.
I do these loans all of the time.
If you do not have the equity you need to pay the balance in cash.
Your current mortgage documents state that if the property ownership is changed, the mortgage is immediately due and payable. This would be on both of you. So no lawyer in their right mind would cause you to default on your loan by taking you off title.