Anonymous
Posted on: 23rd May, 2006 08:53 pm
My husband and I are soon filing for divorce. I want to relinquish my claim to the house to him. I also do not want to be held liable if in the future he loses the house to foreclosure. How is the best way to do both?
hi,
welcome to our forums.
as you wish to give up your ownership rights to your husband, its better to transfer the rights through a title deed instead of a quit claim deed. for that, you need to talk to an attorney for preparing the legal papers and then record the deed at the office of the registrar of deeds. this will make the deed public and enhance its validity.
from your information, i guess you have a liability for paying off the mortgage and perhaps you want to get your name off the loan. in such a case, i shall advice that you can go for a refinance so that the new loan has only your husband as the borrower. or else, you try to convince your husband and find out if he is interested in a novation.
a novation will allow him to take the responsibility of the existing mortgage and pay it off alone. but its the lender's approval that matter most. so if both of you agree then you should approach the lender for his approval.
hope this will help you.
regards,
jessica.
welcome to our forums.
as you wish to give up your ownership rights to your husband, its better to transfer the rights through a title deed instead of a quit claim deed. for that, you need to talk to an attorney for preparing the legal papers and then record the deed at the office of the registrar of deeds. this will make the deed public and enhance its validity.
from your information, i guess you have a liability for paying off the mortgage and perhaps you want to get your name off the loan. in such a case, i shall advice that you can go for a refinance so that the new loan has only your husband as the borrower. or else, you try to convince your husband and find out if he is interested in a novation.
a novation will allow him to take the responsibility of the existing mortgage and pay it off alone. but its the lender's approval that matter most. so if both of you agree then you should approach the lender for his approval.
hope this will help you.
regards,
jessica.
Hi,
I think the best way will be to try for novation, as doing a refinance may cost you more. You will have to pay all kinds of loan fees and closing costs in case you cannot refinance with the same lender. And, you will also have to shop around for suitable rates and terms in case you cannot make the deal with the previous lender.
In case you have no other option but to refinance, just click here to get an idea about the costs involved.
Thanks,
Caron.
I think the best way will be to try for novation, as doing a refinance may cost you more. You will have to pay all kinds of loan fees and closing costs in case you cannot refinance with the same lender. And, you will also have to shop around for suitable rates and terms in case you cannot make the deal with the previous lender.
In case you have no other option but to refinance, just click here to get an idea about the costs involved.
Thanks,
Caron.
My mother wants to give me her house. she already moved out and i pay the mortgage but how do i get both the house and the mortgage on my name. My bank said that i cannot get financing alone for the needed amount.
Hi Marlene!
As you wish to get the house transferred to your name, you will have to sign a Quitclaim deed. Novation, on the other hand will help you in transferring the mortgage in your name. You will have to go for both because quitclaim will transfer the house and novation will transfer the mortgage.
However, you should note that novation requires the approval of the lender. You can also do it by refinancing but most people avoid this as it is costlier and involves lot of junk fees. You can also consult a lawyer who will help you with the legal requirements of the process.
As you wish to get the house transferred to your name, you will have to sign a Quitclaim deed. Novation, on the other hand will help you in transferring the mortgage in your name. You will have to go for both because quitclaim will transfer the house and novation will transfer the mortgage.
However, you should note that novation requires the approval of the lender. You can also do it by refinancing but most people avoid this as it is costlier and involves lot of junk fees. You can also consult a lawyer who will help you with the legal requirements of the process.
My mother is in the midst of a divorce and wants to give us the house we are currently living in. It is in the trust that the house goes to us but the divorce changes things. We make more than enough to cover the mortgage but on our own would not qualify for a loan for the house--valued at 1.4 million with about $500,000 on the mortgage. If we can't qualify for a refi on the house after she transfers the deed to us, will the lender consider a novation? I'm assuming for us to refi the loan in our names we would have to put down almost $100,000?
Thanks for any help on this.
Thanks for any help on this.
The lender will be the best person to answer this. Just have a straight talk with him in this regard.
My divorce should be final soon. The divorce papers specify that my husband has to sign a quit claim deed & I am responsible for refinancing the mortgage. The mortgage co said I do not make enough to refinance, but I am able to make the payments. A novation sounds great - are lenders usually agreeable to this? I just might have to foreclose. Help.
I have been granted a divorce, my ex's attorney wants me to sign deeds over to him and wants 6 months to try to refinance, but in the mean time I will still be responsible for the debts, he is also taking over all the debts of credit cards and wants to include all of them in the refinancing of the mortgage. His attorney also stated that if he cannot refinance he will just keep paying. I don't feel comfortable because he is not paying yet, even after the court order and the agreement, I am still making payments on my credit cards and he still hasn't.. Can I have a novation done for the mortgage and what can I do protect my self from all this mess, my attorney just wants me to sign and I just don't feel that I should give up my rights with no guarantee, can I go to the court to reverse the settlement agreement and request that we sell and pay of debts instead
Hi
You're correct in saying that you shouldn't give up your rights with no guarantee. As he's not current on the payments at present, how can we believe that he would be able to make the payments once the title is transferred to him? I think you should not sign the deed unless there is a gurantee that he will refinance it in his name, releasing you from the liabilities. You can also explore the option of reversing the settlement agreement and paying off the debts by selling the property.
You're correct in saying that you shouldn't give up your rights with no guarantee. As he's not current on the payments at present, how can we believe that he would be able to make the payments once the title is transferred to him? I think you should not sign the deed unless there is a gurantee that he will refinance it in his name, releasing you from the liabilities. You can also explore the option of reversing the settlement agreement and paying off the debts by selling the property.
Hi
My wife and I are currently living in my house that has my name and my father's name on the deed and my father's name is on the loan alone and i would like to know what to do to modify this loan with getting my name on the loan and does it cost anything for a novation of the loan?
My wife and I are currently living in my house that has my name and my father's name on the deed and my father's name is on the loan alone and i would like to know what to do to modify this loan with getting my name on the loan and does it cost anything for a novation of the loan?
please give me a example of why a lender would give a novation.
Hi debbie,
Mortgage lenders do not generally allow a novation. Only a few lenders allow it. In case a borrower wants to take a co-borrower or co-signer off the mortgage, it is unlikely that the lender will allow novation. However, if the borrower wants to add someone to the loan, it is more likely that the lender will accept a novation.
Mortgage lenders do not generally allow a novation. Only a few lenders allow it. In case a borrower wants to take a co-borrower or co-signer off the mortgage, it is unlikely that the lender will allow novation. However, if the borrower wants to add someone to the loan, it is more likely that the lender will accept a novation.
My attorney ill advised me to sign a quit claim deed over to my ex husband at the time of our divorce in 2002. The courts judgement or our divorce settlement states that he would be responsible for all future payments, taxes insurance etc. I did not know about the re-financing or the novation, as I said, my attorney advised me horribly. My ex husband recently passed away and left no will. We had 3 children together that are now 33, 29 and 21. Is it possible for me to have the deed reverted back to me since I am responsible for the loan? Or, if the kids get the house and it is not paid for, what happens if I am unable to pay the mortgage? It would eventually foreclose, as I now am responsible for the house that my new husband and I purchased together 3 years ago.
Hi Debra,
It would be difficult for you to get the deed back in your name as you have been divorced from him. The children would be considered as the heirs to the property. The kids would get the property. If you're unable to pay the loan, it will affect your credit and the property would be foreclosed by the lender. It won't affect the kids in any way.
Thanks
It would be difficult for you to get the deed back in your name as you have been divorced from him. The children would be considered as the heirs to the property. The kids would get the property. If you're unable to pay the loan, it will affect your credit and the property would be foreclosed by the lender. It won't affect the kids in any way.
Thanks