ona
recently joined
Reged: 11/07/05
Posts: 1
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My husband and I are amicably divorcing, still living in same house with kids, going through paperwork, no animosity. I am buying a home in another state and my soon-ex is going to keep the house, at least for awhile. He's trying to get our equity line increased so he can take a huge chunk out to pay me. Since we both still own the house, won't my name be on this 2nd mortgage? This doesn't seem smart, does it? Can he get an equity line without my name on it?
ona
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RJP
newbie
Reged: 10/31/05
Posts: 26
Loc: Pierce County, WA
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Amicable divorces have a habit of becoming not so amicable. If he takes a second on a house with your name on it, I believe that your name goes on the second (the mortgage company will want all the security they can get). If he can't qualify to take out a new 1st mortgage to get your name off the house (don't do a quit claim), force a sale.
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Cinder2
Carpal \'Tunnel
Reged: 06/02/05
Posts: 4361
Loc: Southern California
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He needs to refinance the entire house in his own name and the amount refinanced needs to be large enough that he can buy you out. For example, if your mortgage right now is $100,000 and your house is worth $200,000, then he needs to get a loan in his own name for $150,000 so he can pay you the money he owes you.
Cinder
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sandflea
addict
Reged: 09/08/05
Posts: 447
Loc: norfolk, Virginia
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My situation:
My wife wanted ~ $60,000 to buy her off the deed. Your husband is in a similar situation. He will want you to sign a quit claim deed - basically, a document taking your name off of the deed. You should put those terms in your separation agreement.
I refinanced our house (we owed $139,000 over 15 years). Re-appraisal (as a part of the refinance/loan process) came in at $300,000. I took ~ $80K, gave her $60K, kept $20 to fix up the house. This was a "cash out" refinance. So, now I owe $225K over 30 yrs. A step back, but a step forward as well.
What he can get you depends on how long you've been in your loan, how much you owe, and how much your equity has been going up. If you have any existing equity lines of credit, you'll need to settle them prior to refinancing. All liens need to be taken care of first.
You really want your name off the deed - because if he defaults - it's your credit, and your financial responsibility as well.
- SF
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Beaches, Bluegrass, Bach, Beer, Bodhisattva, Blisters, Bikes, Boats, Bhujangasana and Bayer
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RJP
newbie
Reged: 10/31/05
Posts: 26
Loc: Pierce County, WA
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A quit claim deed will clear your name off the title, but will not take your name off the loans. Don't do a quit claim.
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Cinder2
Carpal \'Tunnel
Reged: 06/02/05
Posts: 4361
Loc: Southern California
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Well, she has to sign the quit claim deed eventually. She just shouldn't do it until she is certain that he has the mortgage in his own name.
Cinder
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sandflea
addict
Reged: 09/08/05
Posts: 447
Loc: norfolk, Virginia
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Yep - that's what I meant by all liens, etc off of the loan. And NO - Don't sign a quit claim until you get your cash!!
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Beaches, Bluegrass, Bach, Beer, Bodhisattva, Blisters, Bikes, Boats, Bhujangasana and Bayer
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matilda
Pooh-Bah
Reged: 11/11/04
Posts: 2087
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If he is increasing the loan amount and your name is on the loan he is increasing YOUR debt to income ratio. Depending upon how much money you make it may make it more difficult or impossible for you to qualify for a home loan in your new state. They will run your credit report and see that you owe that money as well. I agree don't sign a quit claim until he has re-financed. If you sign one and he defaults you don't have a right to try and save your credit and re-claim the house.
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legalidiot
enthusiast
Reged: 05/06/05
Posts: 250
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A little word of advice. Try to make sure it's fair. If you don't.. he'll never agree. I have a friend who went through this same thing. The house was appraised at $230,000 - They owed $170,000. He could only get a loan to finance for $190,000 and offered to give her the 20K. She refused to take it, insisting on the entire $30K in equity, and forced the sale. It turned out the appraisal was too high, the house sold for $200,000, and after the realtors were paid (6% - 12,000), necessary repairs were made(4,000). They both got a check for $8,000.
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Keep the relationship problems away from the kids
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sandflea
addict
Reged: 09/08/05
Posts: 447
Loc: norfolk, Virginia
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That's right. He need to do a cash out Refinance ON HIS OWN! Just his credit, just his name on the loan. This has to be a new loan, just his, to buy you out. Otherwise he's just dumping more debt on both of you.
I contacted a lender (USAA), had them send me a packet (they're more than willing to) - just to me. My name, my SSN, my credit, etc. They'll schedule the appraisal, etc.
I had a great deal of success with Freedom morgage (fhmc.com). Their appraisers seem to come in high. He needs to get enough cash to pay off other loans (they'll ask him), and to buy you off the deed. Yes - be fair. How much has your place accrued equity over the life of your existing loan? How much do you still owe? Did you contribute equally to the morgage (weighted for your respective incomes)? Show him SOLID numbers, and he'll bite. Sooner the better, interest rates are going UP!
- SF 
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Beaches, Bluegrass, Bach, Beer, Bodhisattva, Blisters, Bikes, Boats, Bhujangasana and Bayer
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