Posted on: 31st Jan, 2011 07:59 am
My husband and I may be getting a divorce. We have been in the house for 1 year. What are the ramifications of getting a divorce with a 1 year FHA loan? What are our options if 1 of us wants to keep the house? What are the options if neither wants to keep the house? Can we sell after 1 year?
What I meant to say is What are the ramification of getting a divorce when we have only had the loan for 1 year?
anne, all the scenarios you suggested are possible, but your individual circumstances will determine which are probable.
1. of course you can sell, provided you have sufficient equity to cover closing costs and commissions.
2. either one of you can refinance to remove the other, provided that person can qualify individually and you have enough equity.
3. if one of you elects to just release their interest in the property, by signing a quit claim or inter-spousal transfer deed, remember that person will still have liability for the loan, so in the event payments stop being made their credit will take a major hit even though they no longer own the home.
good luck!
1. of course you can sell, provided you have sufficient equity to cover closing costs and commissions.
2. either one of you can refinance to remove the other, provided that person can qualify individually and you have enough equity.
3. if one of you elects to just release their interest in the property, by signing a quit claim or inter-spousal transfer deed, remember that person will still have liability for the loan, so in the event payments stop being made their credit will take a major hit even though they no longer own the home.
good luck!