Home Loans and Support

Need to remove soon to be ex-husbands name from home loan, having lots of trouble

Discussion in 'Loan Modification' started by joyluck408, Aug 3, 2011.

  1. joyluck408

    joyluck408 LoanSafe Member

    Hi. I'm looking for information about my home loan. I'm soon to be divorced, and have an agreement with my ex husband to keep the property as long as I can remove his name off of title and the loan. I have until March 2012 to accomplish this task. We purchased the property in November 2010 for $300,000 with 10% down. We locked in 4.5% interest rate in a 30 year conventional loan. My monthly mortgage payments including PMI are $1507.38. The unpaid principle balance is $267,088.28. The property is a townhouse, and labeled as a PUD unit. There are 100 properties in the complex that are owner occupied, and 25 that are rentals. The comparable sales average is $241,238 which is below my loan value. I'm having trouble qualifying for the loan being self employed, and that my debt to income ratio is to high. I've tried to assume the loan and also refinance, but still no success. A lender recommended modification, but I'm not trying to change the payments because of hardship. I'm capable of being financially responsible for the home, and have been the last five months. All I want to do is remove him, and become sole owner of this property. I am fortunate enough to have a family member willing to sign on as a non occupant co borrower, but still haven't found a solution. I've been told there are a few obstacles such as: comps are lower than my loan value, having PMI on the loan, income not qualifying, and my debt to income ratio is too high. If there's any information out there that can help, can you please pass it along. Thanks
  2. Cat Damiano

    Cat Damiano Mortgage Wars

    HI joyluck408,

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

    Are you listed as receiving the home in the divorce decree? If so, what is the assumption department telling you?
  3. joyluck408

    joyluck408 LoanSafe Member

    Hi Cat, thanks for the reply.

    I do have an MSA doc that states I get to keep the home, while he gets some money.

    The assumption department wants the loan to be a year old in November. Plus my debt to income is too high to qualify.
  4. Cat Damiano

    Cat Damiano Mortgage Wars

    Other than refinance or being able to assume the mortgage there really isn't much that can be done to get him off the mortgage note. If the family member is willing to help you out, maybe the lender would allow them to assume the mortgage with you, but I don't know.
  5. LSTRAW1

    LSTRAW1 LoanSafe Member

    response to how to get off a mortgage

    I have seen this many times before. Unfortunately, the family courts do not understand how mortgages work. You can put anything you please in a divorce decree concerning a spouse removing the other one from a mortgage. Here is how it really works. In most cases I have worked with it is usually the wife who wants off the mortgage. Usually, the husband has an ax to grind against his former spouse, so he stops paying the mortgage thinking he is getting even with her for divorcing him or whatever. Since the mortgage is held jointly, default harms both borrowers credit scores!
    The ONLY ways to remove one person from a joint mortgage is to refinance! OR SELL THE HOUSE! since you are upside down, you will have to sell the house in a "short-sale" (selling for less than the mortgage amount you owe).
    You stated you cannot assume the mortgage. Why would you want to assume a mortgage that is more than what the house is worth? Get out from under neath this one and go buy another house at current low market price! The problem is always that the remaining spouse-borrower has to have the income and credit, etc. to meet the lenders financing guidelines. Usually they don't because that's why two borrowers were on the mortgage to begin with; both incomes and credit scores were then needed to get the mortgage in the first place.
    So, in your case JoyLuck, unless your Ex can refi or sell the house...perhaps in a short sale (have to get a real estate agent and a lawyer representing you who knows real estate law involved) or an outright sale. Depending on where you live, the real estate market may be very depressed and you say you are upside down. Therefore a short sale is your only option.
    But FEAR NOT! your "parachute" is always there in case all else fails; that is a Chapter 7 Bankruptcy. Now, before you scream< "oh but I don't want to ruing my credit score!" Let me assure you, its already dinged if your ex hasn't or doesn't keep up the payments. A chapter 7BK will GET YOU OFF THE MORTGAGE! which you state is now a liability because you owe more than its worth! After a BK you can easily rebuild your credit in a short period of time! I think the period is two years before you can get another mortgage from a bank. But, you can always buy with seller financing! I have done it myself and helped others do it.
    Do NOT fall for any scams where a so-called real-estate investor wants you to deed the property over to him promising to "take care of it". I have seen these scamers take ownership of someone's home, holding title in an LLC or trust, rent the property out to unsuspecting tenants, collecting rent, etc. until the home is foreclosed and the eviction notice comes. Chapter 7 BK is your ticket! Good luck and God bless!

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