Home loan

rhett342 · 2023-11-26T00:36:55+00:00

As far as I know you're going to have to refinance at the much higher rates. That's what I'll have to do.

SecretAltruistic6878 · 2023-11-26T03:53:33+00:00

What about a quit claim plus your divorce papers? Ask your lawyer or lender about it

MartyMcFly7 · 2023-11-26T05:35:07+00:00

The primary reason to take someone's name off a loan is so they're free to buy another home without having the old debt still in their name (affecting their credit). But since you're each taking a home, can't you come to some sort of agreement? You'd both still be on the hook if the other stopped paying, BUT you could draft a contract saying you're liable to repay the other person should they ever have to make a payment on your behalf (and all equity henceforth belongs to you, you remove them from the deed, etc.). The bank doesn't care where the money comes from, as long as it keeps coming and they're still allowed to come after either one of you if the payments stop. But you can make whatever agreements you want on top of that, between yourselves.

Gattsama · 2023-11-26T05:53:04+00:00

You are describing an assumption loan. This is still a new loan, and the new loaner needs to qualify. Not all loans qualify for or can be converted to an assumption loan.

An assumption loan is just that. The new loan assumes the old. Same interest rate and time paid. But it is a new loan, so have to: apply, be approved, and pay closing costs.

Check with your bank and a few others to see if this is possible based on your current loan.

EnvironmentalAd3558 · 2023-11-26T06:27:17+00:00

It is up to the lender if it will allow this. If you were the lender would you want to keep the loan at 2.69% on its money when it can now get 7%?

It is usually best to completely separate your finances and debts. That usually means refinancing.

But refinancing means higher payments and less money for you and your kids.

Getting off title is easy. But if you remain on the mortgage on the house your ex takes then you remain liable if she fails to make payments to the mortgagor. If there is plenty of equity there may not be any significant risk that you will become indebted if the lender foreclosure, but you credit rating will take a big hit. Plus if she fails to pay the lender then will she also fail to pay the real property taxes and insurance premiums? Failure to pay those expenses are usually defaults under the mortgage too. So her default can create an incentive for you to cure just to keep your credit good. Not a good position to be in.

If there is some compelling reason to do this, then you should get some sort of paperwork giving you legal protection like a second mortgage with limitations and boundaries. Such as if you do decide to pay these expenses that your are entitled to a lien against her home which you can then foreclosed on when it reaches a certain dollar amount and that it has to be repaid within a reasonable period. Also it should include an obligation by her to refinance when interest rates go down to less than say 5% or in 4 years even the rates don’t go down. Pretty complicated but if she defaults and you choose to cure then you will be in position to foreclose her off title and take title in your name only. That should give you the sole power to sell it, refinance it or rent it out.

techrmd3 · 2023-11-26T22:49:40+00:00

There is NO WAY to do this. Ok it's been asked a million times and Lawyers and other people WHO ARE NOT BANKERS will even state they have had X Y Z or a cousins uncle do it.

YOU CAN'T DO IT... you both signed at origination and you will BOTH be on the loan until it is paid off. Period end of story.

Title	Home loan
Author	jlaw33
Upvotes	7
Comments	18
Date	November 26, 2023 12:29 AM UTC (2 years ago)
Subreddit	Posted in /r/Divorce_Men
Original Link	https://old.reddit.com/r/Divorce_Men/comments/183xxsw/home_loan/
Archive Link	https://theredarchive.com/r/Divorce_Men/home-loan.1239356 https://theredarchive.com/post/1239356

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