Awarded house in divorce decree, can I remove with quit claim deed?

Question

This is the way corelrect?   What is the process?

Russell Brazil · Answer

Is there a loan on the property in both persons names? You'll need to refinance out if that as well.

Theresa Harris · Answer

Your divorce attorney should be able to answer that question for you.

Ron S. · Answer

The beneficiary of that assumption has to fully credit qualify so, while yes, I agree that might be an option, it's not a given. I've done one in the last ten years and thankfully that one did not have MI because the MI companies do not have to agree to these assumptions.

Melanie P. · Answer

You may be able to do a novation assumption. There are exceptions where mortgages are assumable following a divorce. Fannie lists the exceptions in D1-4.1-02 and Freddie in 8406.4.

HOWEVER, the best and most effective way to handle your title and loan issues is to simply refinance the loan. If you no longer qualify for a loan you should sell and move. The home loan was based on your combined borrowing power. If you cannot refinance it is unlikely you'll be granted the novation and it will take a lot longer to get an answer on that.

Bruce Woodruff · Answer

Sorry, they do. I am actually doing this right now. It's called a 'Loan Modification'. It's time consumng but doable. Most Lenders will do this for you....

Ron S. · Answer

No lender is removing anyone from an existing loan. The receiving party should refinance the property (Assuming they qualify) into their name only with a new loan. The quitclaim could be a part of the refinance at signing. The prelim would show spouse A being removed and spouse B as the sole borrower and owner.

Bruce Woodruff · Answer

You have to remove them from the loan first and requalify on your own. After that step, they should be fine with signing a Quit Claim Deed to you.

Chris M. · Answer

So the mortgage would remain unchanged but the ex could be removed from the deed?

Chris Seveney · Answer

@Chris M.

What we have seen in past is it would be a quitclaim deed from one to the other.

As Russell mentioned if there is a mortgage that will stay in the parties name

Awarded house in divorce decree, can I remove with quit claim deed?

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