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question about mortgage question (refinance), and divorce.

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Semidevil

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so the divorce is coming to a close. I have one question about our house.

-the consensus is that I will keep the home (i.e, I will be making the mortgage payments, be legally responsible for the home, living in it etc etc.).
-Just last week, I got approved for a refinance for a lower interest rate and lower monthly payments. We closed on the refinance last Wednesday
-the refinance had to include my income and also the wife's income. we tried it with only me and I did not approve.


the paralegal is asking is who will keep the home. If I tell her to take the wife's name out, can this affect my qualification for the refinance? can the bank come back and say that since there is only one income now, they have the right to disapprove me?

-As of now, the new bank has not taken over yet. the old bank hasn't been paid off, and the first payment for the new bank is not due until May 1st.

It's actually kind of a coincidence that 2 of these would occur at the same time.

I talked to the wife and she doesn't mind leaving her name on it. but I just know that down the road, it can cause lots of problems when it comes to selling it, splitting equity, etc etc.

any body have any expertise on this?




 
My understanding is there are two separate issues - the name(s) on the deed, and the name(s) on the mortgage. You can be the only person on the deed and have both names on the mortgage in order to qualify.

That would mean your wife would have no ownership in the house, but would potentially be liable for paying for it.
 
so when the paralegal asked 'who will keep the house,' is she asking about the deed or about the mortgage? I.e, what happens after the divorce? does the courts contact the bank to drop her name, or does the court just make only me the legally responsible for the home?
 
Again, this is my understanding. I don't think the court can direct the bank to take her name off the mortgage. Only a refinance could do that.
 
it depends on the terms of the divorce and if she is a biatch about it...personally I would not want any association to an ex on anything
 
Originally posted by: Semidevil
I talked to the wife and she doesn't mind leaving her name on it.
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Wow, she's a moron. Good thing you are divorcing and not letting her keep the house.

Also, if I was you, I would either refi in my own name and sever the financial tie. Or force the sale of the house in the divorce to sever that tie. If the bank won't give you the money on your own, there's probably a reason.
 
Originally posted by: Beattie
Originally posted by: Semidevil
I talked to the wife and she doesn't mind leaving her name on it.
Click to expand...

Wow, she's a moron. Good thing you are divorcing and not letting her keep the house.

Also, if I was you, I would either refi in my own name and sever the financial tie. Or force the sale of the house in the divorce to sever that tie. If the bank won't give you the money on your own, there's probably a reason.
Click to expand...

Agreed. Your wife needs to seek better legal counsel. And you shouldn't want her on title, because she becomes an equal owner. This is bad for both of you.
 
Keeping her on the loan and the deed can really bite you in the ass. I have been an insurance adjuster for 18 years and have seen it happen many times. Lets say you have a total fire loss or total loss due to a tornado. The ex has an insurable intrest and would be included on any claim payments. If she wants to be a bitch about it legally she gets half.

I had one claim where the ex-wife slept with her husbands brother causing a divorce. She was not on the loan and the divorce decree stated that if he sold the house the ex-wife would get 50% of the equity. The house burned and I argued with the ex-wifes lawyer that since the home had burned and had not been sold the ex-wife would not be included on the claim payment. The lawyer had a court order within 24 hours stopping any payment and eventually the ex-wife got 50%.
 
First the easy part, if you cannot qualify for the loan on your own then you may be screwed on the refi. Technically if she is not going to be contributing toward the mortgage and is only leaving her name on it so you can qualify, that may be mortgage fraud. Not an expert but your walking a very fine line.

Second. Yes it would be simpler to sever the tie now but you would likely need to give her her share of the equity now, or you will have to when the house is eventually sold.
 
If you leave her name on the mortgage she can get screwed, if you leave her name on the title, you can get screwed.

If you want to protect yourself, have her sign a quit claim after you refinance.

Are you upside down on the mortgage?

Im not a lawyer so do your own research/hire a professional, blah blah blah
 
Originally posted by: boomhower
First the easy part, if you cannot qualify for the loan on your own then you may be screwed on the refi. Technically if she is not going to be contributing toward the mortgage and is only leaving her name on it so you can qualify, that may be mortgage fraud. Not an expert but your walking a very fine line.

Second. Yes it would be simpler to sever the tie now but you would likely need to give her her share of the equity now, or you will have to when the house is eventually sold.
Click to expand...

well, if she leaves her name on it, then to me, she is part owner, so I would expect her to pay half of it....

was just curious on how this usually works. I have no intention of doing anything against the law. Just throwing around some 'what if' situations.

Like I said, it was just kid of coincidence that it would happen at the same time
 
What did your lawyer, that you have already spoken to and retained I can only hope you have, have to say about this? Don't do or agree to anything she says without speaking with an attorney familiar with these matters, otherwise you're gonna get screwed.

Best bet is to severe any and all ties legally and financially. The house must be sold and you can then get rid of her and begin your new life.
 
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