Seeking Investor to Cash Out Refi my home out of exhusbands name bad credit

[Carrie Cavender]

I am usually on the other end of this situation, but the past three years have been a huge financial challenge for me. Like a lot of other people. 

Summary: 

Sold my affordable home in 2021 with a $900 monthly mortgage and bought a larger much more expensive house with my new husband. His name is the only one on the mortgage but my equity from the sale of my home was the downpayment. He had perfect credit so the interest was 2.9%.  His credit is good and we did not even have to have an appraisal!

We divorced in December 2023.  He wanted to sell the house, and I did too at first. But at that time interest rates were 8%. I would have been selling a large home with income potential for a smaller home that would not even have enough space for my kids and foster kid and would have a larger monthly payment. 

We agreed that I would be awarded the house in the divorce with 12 months to refi out of his name. I was working with a broker I use for my clients often on a FHA cash-out refi. I was sure I would be able to meet the criteria for that within 12 months. I finished in my basement and now have a renter paying me $1200. The monthly mortgage payment is $2800 which is doable.

My plan was to cash out refi and use the cash to pay off debt, and increase my horrible credit score and the rest would go into a 10% interest bearing fund to be used to cover the higher monthly payment after the refi and losing the sweet 2.9%. 

I thought I had a solid plan until I got laid off. The job market the past year has been horrendous. I was out of work for nearly 8 months so my credit got even worse. I was in pure survival mode and things that weren't necessary did not get paid. Credit cards were charged off. I made all the stupid mistakes I tell my clients not to. 

I have worked with investors long enough to know there is a solution out there, I just need to find it.  

My house is in a highly desirable area and I get letters often from people asking to buy it bc they love the area. 

Current value is approx $650K - current mortgage balance is $460K maybe less. I wanted to cash out refi around $75-90K to get completely debt free and have a fat savings account to cover the higher mortgage payment until I was able to refi again in two years. 

I've asked my exhusband to sell the house to me subject to be able to keep the sweet interest rate but he doesn't understand REI nor does he trust it. So thats not an option.

I am fine paying a high interest for two years or even giving up some of the equity if I can find the right investor. 

Selling is def an option and I would make a great profit, but I have three kids in school and one foster kid in school - I also now have a single mom renting my basement and she would be displaced as well. 

If anyone knows an investor willing to tackle this with me, I know there is a win win here !!!!