Posted on: 31st Mar, 2009 09:25 pm
i am getting divorced and am unfortunately taking over our $333,000. mortgage! i am willing to quit claim, but my soon to be ex wants a novation as well, i'm leary to do this, will this hurt my credit due to debt to income ratio? i'm an e-7 in the army, but am no millionair by any means! i really need to know asap.
Hi GI Jane
If you are taking over the mortgage, then you do not need to quitclaim the property. It is your ex-spouse who needs to quitclaim the property to you. Once he quitclaim's the property to you, then you need to go for a novation or refinance. A novation will not effect your credit score. But if your debt to income ratio is high, then there are chances that the lender would not transfer the loan in your name.
Thanks.
If you are taking over the mortgage, then you do not need to quitclaim the property. It is your ex-spouse who needs to quitclaim the property to you. Once he quitclaim's the property to you, then you need to go for a novation or refinance. A novation will not effect your credit score. But if your debt to income ratio is high, then there are chances that the lender would not transfer the loan in your name.
Thanks.