Land O Lakes, FL · Member since 2013 · 17 posts · 3 votes
Situatuion: After the divorce my wife got the house (as in I signed the quit
claim deed) while the mortgage remains under my name as she was never on the loan to begin with.
Challenge: She rents a house in another state and rents out the house she got in the divorce (The house is not her primary residence). The said property is upside down.She has it on rent and the mortgage is being paid by her on time. The mortgage is not assumable. She is 1099
Need the solution: Is there a way she can get the house loan transfered in her name without putting any money down and relieve me off the dept.?
Real Estate Broker · Northwest Indiana, IN · Member since 2011 · 2k+ posts · 2k+ votes
13y
The short answer, if the mortgage is not assumable, there is no way to get her on the loan and you off without a refinance. Many times in divorce decrees there is a stipulation to get a new loan to extinguish the shared debt. You might want to speak to your divorce attorney on legal remedies to this situation. I am not sure much can be done after the divorce decree is issued though.
Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
13y
@Hassan Tirmizi Its much easier to add someone onto a note than to take them off. I knew someone who went through a similar situation and here's what the bank told them to do. Mind you that both their names were on the mortgage. Have the person who's name you want the mortgage to be under pay for the mortgage for an entire year out of an account that only their name is on. It cannot be from an account with both parties name on it. After that the bank was willing to remove the other person off the mortgage since the single party demonstrated payments. You can call the bank and ask them if they're willing to do this. It worked for them.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y
The simple answer is she needs to refinance the house. She owns it, so it will be a refinance, not a purchase money mortgage.
Trouble may be the value. I think you're saying the house she got in the divorce is underwater. So, in a refinance she would need to put cash in in order to get the loan amount below whatever LTV limit the bank applies. That's typically 80% for a rental property.