Assumption Loan Application before Divorce

[alexindy]

Thanks for taking the time to read this post and I appreciate any kind of feedback anyone could share.


Following situation: My wife and I separated over a year ago. She stays in the house, the mortgage is in both of our names. We want my name of the mortgage. We have the divorce papers all signed and ready to go, but have not filed yet.


It was my hope for her to have the home refinanced in her name before we file, her income is sufficient, and she has excellent credit. Unfortunately the appraisal came back at pretty much what is still owned on it; with no cash reserves to speak of the refi option didn't work. I called Citimortgage to see if there are any option and after talking to four different people one person suggested an Assumption Loan. One connection later a person with a heavy, heavy Indian accent promises to send the application forms via snail mail.

We have the package, but now I have a few questions and calling the number provided (866) 606-0889 is immensely frustrating. I have been on hold for 40 minutes one day, and 35 minutes the other day. Then I found this forum and I just have some basic questions, maybe someone could shed some light on:

CitiMortgage demands a $900 non-refundable fee to evaluate the "Release of Liability" application. Now before I cough up that amount of money I would like to know what could be the reasons to have the "Release of Liability" denied. Anyone knows?

Like mentioned the divorce did not happen yet, one reason is that we would like to have everything settled before to make a clean cut. Would it be favorable to have a divorce decree? Does it make a difference in how Citi would look at the application?


The fee of $900 can be paid by credit card. Does it matter if who of us pays the fee? Since the goal is to take my name of the mortgage should it be, should it be her since she is the one left on the mortgage?

Will Citi do another home appraisal, is ther another fee I am not aware of and how can that fall into play since the home values dropped in our neighborhood?


Is it better to have a divorce decree before applying for the "Release of Liability"?

I think that's it for now. My main concern is Citi denies the assumption loan application, we are out of $900 and have nothing accomplished.

Thanks you all for your feedback.

Alex