Getting myself off mortgage

CaliDude75 · 2023-11-22T05:57:44+00:00

She’s going to have to refi. Most lenders will not do an “assumption” loan (i.e. keep the same interest rate.) It works in your favor if interest rates are lower, not so much if they’re higher.

Objective-Fan-5464 · 2023-11-22T18:41:03+00:00

As many have said, your only option is to have her refinance. At current rates, a $300k mortgage is around $2,100 per month. Add in property taxes, insurance, and HOA and say that goes up to $3,500 per month (your numbers may vary). Any mortgage company wants to see 3x to 4x in income so does she make $11k to $14k / month? If she doesn't, then she may use that as a basis to get alimony from you.

I think your best option is to push for a sale and split the equity.

Alternatively, Put in the following in the divorce decree (assuming you are petitioner and she is respondent)

Refinance Obligation: The Respondent is hereby ordered to procure refinancing for the marital home within three (3) months from the date of this Order. During this three (3) month period, the Respondent shall be solely responsible for making all necessary mortgage payments on the existing mortgage.
Failure to Refinance: In the event the Respondent fails to secure refinancing within the prescribed three (3) month period, the Petitioner shall have the exclusive right to list the marital home for sale at a price not less than Eight Hundred Thousand Dollars ($800,000.00).
Sale Proceeds in Case of Failure to Refinance:
- Should the marital home sell for less than Eight Hundred Thousand Dollars ($800,000.00), the Respondent shall be liable to the Petitioner for the equivalent of the Petitioner's share of the equity based on the aforementioned sum of $800,000.00, irrespective of the actual sale price.
- Should the marital home sell for a sum exceeding Eight Hundred Thousand Dollars ($800,000.00), the proceeds in excess of this amount shall be divided equally between the Petitioner and the Respondent, with each party receiving fifty percent (50%) of the surplus.
Quitclaim Deed upon Refinancing: Upon the successful refinancing of the marital home by the Respondent, the Petitioner agrees to execute a Quitclaim Deed in favor of the Respondent contemporaneously with the closing of the refinancing transaction, thereby relinquishing any and all interest in the subject property to the Respondent.

Lumptbuttcat · 2023-11-22T13:21:12+00:00

If you are close to settling you need to get the language tight and she needs to qualify for a refinancing. Need to get language in the settlement that states she will have 3 months to qualify and refinance with you receiving half equity. Key is a deadline which, if not met, means you sell the house and split proceeds.

crackbaldo · 2023-11-22T13:21:39+00:00

You need a drop dead date in the settlement agreement. If she can’t refi within a certain period time, she has to list the house for sale.

aquatone61 · 2023-11-22T13:53:02+00:00

If your name is the only one of the mortgage then wouldn’t she have to buy the house from you? She can’t buy out your equity if she’s not on the mortgage…… Sounds like this needs to go to a lawyer.

Edit - whoever downvoted I’d love to have explained how someone who isn’t on a mortgage can refinance said mortgage.

jimsmythee · 2023-11-22T15:31:42+00:00

The short answer is NO.

She can't assume a mortgage and pay you out at the same time. Well, not unless she has other funds to pay you your equity interest in the house.

the long answer is "maybe?"

If your loan type is an assumable loan. And if she would qualify. And if she's paying you your equity interest in the home from other funds, then yes the bank would allow her to assume the mortgage.

FUMoney · 2023-11-22T16:44:37+00:00

Do not sign over title, or quitclaim, until the mortgage situation is resolved and you know for certain you are, or will be, off the mortgage.

telangn · 2023-11-22T17:32:09+00:00

Can a divorce decree remove someone from the mortgage without Refinancing?

Substantial_Bar_8476 · 2023-11-23T05:21:31+00:00

She will have to get her own mortgage and pay you out

Efficient-Mango7708 · 2023-11-23T08:03:43+00:00

Some really good advice in these responses. I’ll reference this as I read through some of the divorce paperwork today.

My house situation is similar and my mortgage is with Mr. Cooper. I was able to initiate a request for mortgage assumption online and then they mail a package with an additional questionnaire. This needs to be sent back within 30 days, but the wife did not take action and that window has passed. You can create another request for review.

I certainly hope she can get the mortgage assumption processed at a 2.65 rate instead of 7+.

Title	Getting myself off mortgage
Author	GuyRedditAccount
Upvotes	2
Comments	22
Date	November 22, 2023 5:45 AM UTC (2 years ago)
Subreddit	Posted in /r/Divorce_Men
Original Link	https://old.reddit.com/r/Divorce_Men/comments/18121hc/getting_myself_off_mortgage/
Archive Link	https://theredarchive.com/r/Divorce_Men/getting-myself-off-mortgage.1239074 https://theredarchive.com/post/1239074

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