Posted on: 10th Apr, 2012 04:37 pm
so my ex wife and i divorced less than a year ago, and she awarded me the house. the divorce decree says i have until this may to start the process of removing her name from the mortgage or she can force me to sell. the house is more than 30k underwater (bought in 2008 of course) but, i wanted to keep it. bills have been difficult lately. so i have been exploring the idea of a loan modification. i am current on my mortgage payments, but wanted to a) see if i could get the payments reduced somehow because of the financial strain and b) remove her name from the account at the same time. my lender says i should get her to go through the modification with me since her name is still on it and then try to go thru the process of refinancing or assume the mortgage. i am worried about this component since my credit has taken some hits lately as i have been prioritizing my bills as house, child support, and vehicle. i have tried to refinance via a streamline or regular fha but they either tell me my home is too far underwater, or my credit score isn't up to snuff. any other ideas?
her forcing me to sell wouldn't do either of us any good because it would either have to be short sold or foreclosed due to it being underwater.
thanks a million.
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her forcing me to sell wouldn't do either of us any good because it would either have to be short sold or foreclosed due to it being underwater.
thanks a million.
..
A court order to sell the home, will not do anything with your current lender. It happens all day long in divorce court. The court cannot MAKE your home sell. If there is no equity, then you can not sell the home. you mentioned FHA streamline...Do you currently have a FHA loan? If so, you should apply for the No appraisal, no income FHA streamline...The value would depend on the original value of your last loan, not on the current value. So if your home has dropped in value, the lender should be using the value logged in FHA...Most lenders will want atleast a 620 fico, but FHA will go as low as 500 fico. What state are you located in? Try to contact another lender who may be able to find the right program. If you are on a Freddie or Fannie mae loan, they also have refiancing programs that may help you. Short sale would be your last option, and I would avoid deed in lieu or any foreclosure...Modifications just dont go through, thats a dead horse. Good luck-
Thanks for the response Chris - I live in Texas.
As you have a financial strain, you should contact your lender and apply for loan modification. This will help you in getting better terms and conditions in order to pay off the loan in an affordable manner. In order to remove your ex-wife's name from the mortgage, you will have to assume the loan. The lender will take a look at your credit situation and will let you know whether or not you will be able to qualify for the assumption.