A few questions for Walking in Washington State

[Boogey]

I am really soaking up the information on this site! Thank you to everyone who has shared. I have a couple of questions I was hoping to get some input on. I live in Washington State and have recently decided to walk from my home. This was a difficult decision but looking at the future I do not see a better alternative. $110,000 upside down. 1st Mortgage is on a 3 year Arm and second is 30 Year fixed.

I purchased the home before I was married. The loan is only in my name. My spouse is not on the title or any loan documents. We are hoping to use my wifes income, no debt, and good credit to allow us to get into another home sooner than later. As you can understand my credit will be trashed so we would not get approved with both of us.


I have a few concerns - Washington is a community property state. Since I purchased the home before we were married. I think she would be clear from this home for any recourse from the foreclosure?


Is an FHA Loan out of the question with her alone trying to qualify? I have read that FHA Loans require you to use the spouses DTI even though the spouse will not be on the loan? I know that we can try to go conventional with a larger down. We have even discussed legaly seperating if that will make her chances better on obtaining a mortgage. I am just trying to cover ourselves before we get to deep into this walk. Making the decision to walk has been hard enough, I do not want any surprises later down the road.

Thank you for listening and I would appreciate any advise you can offer.

[Cat Damiano]

Hi Boogie,

Welcome to the forum and thank you for joining............

Washington foreclosure also allows deficiency judgements.
Washington State Foreclosure Law

Your questions regarding community property and the recourse from deficiency would need to be asked of an attorney familiar with the foreclosure laws in Washington.

You are correct, for an FHA loan a married borrower who wishes to purchase a home without his/her spouse, still must include the income and debts of the spouse on the application if the borrower resides in a community property state. A non-purchasing spouse may be required to sign a document acknowledging the transaction and relinquishing his/her rights to the property.

The consult with a foreclosure attorney will help to clarify your concerns and avoid the surprises further down the road.