Posted on: 30th Jan, 2010 04:45 am
Getting a divorce and was just about to sign on a refi in order to get husband off of the loan. Yesterday I learned of the loan modification program...and understand that I would have to do an assumption vs refi in order to qualify for the program. Since my new mrtg payments would be 43% of my annual income on the currently proposed refi, I am anxious to look at this option...but don't know anything about assumptions. I inquired to my broker about all of the above ( understanding that her responses may be biased since it would take potential income from her) who stated that it was a very BAD idea......anyone have info for me? I;m on a very tight timeline as husband is eager to get off loan to put in an offer on a new house. Help!
hi,
it's unlikely that your lender would want to take your husband's name off the loan through a simple assumption. most of the lenders would want you to refinance the loan in your name and pay off the existing mortgage. otherwise, they would not remove your husband from the mortgage.
lenders generally use assumption in situations like when the borrower is deceased and the one of his/her heirs want to take over the responsibility of mortgage payments, etc. a refinance seems to be the option for you to release your husband from the mortgage liability.
it's unlikely that your lender would want to take your husband's name off the loan through a simple assumption. most of the lenders would want you to refinance the loan in your name and pay off the existing mortgage. otherwise, they would not remove your husband from the mortgage.
lenders generally use assumption in situations like when the borrower is deceased and the one of his/her heirs want to take over the responsibility of mortgage payments, etc. a refinance seems to be the option for you to release your husband from the mortgage liability.
Thanks for the quick response about my post. Do you recommend I call BOA assumptions dept to simply ask them if I can assume this loan? I am feeling desperate to (hopefully) get an assumption only because I will not qualify for the loan modification program with a refi, because to qualify for modification, I was told by the co. that the loan must have originated before 01/09....and as a refi, this would now be a new loan. Thoughts? Advice? My signing with the closing is scheduled on 2/9....so I have to come up with firm answers by then. (I plan to call BOA on Monday).