Posted on: 06th Jun, 2011 11:31 am
Question 1: I understand that i can do a quitclaim deed to remove his name from the house. Does it remove him financially? I pay the mortgage and he wants his name off of the house and not be financially responsible either.
Question2: I also heard that the lender has the right to ask for the full balance once a quitclaim deed is filed... is that accurate?
Question 3: I have a high loan to value and can't refi due to the market.. is there a company that deals with high loan to value or what else is an option besides selling?
Question2: I also heard that the lender has the right to ask for the full balance once a quitclaim deed is filed... is that accurate?
Question 3: I have a high loan to value and can't refi due to the market.. is there a company that deals with high loan to value or what else is an option besides selling?
Hi. ?1 when you are on the loan, the only way to remove a party is by selling or refinancing. You can add or remove parties on title, but cannot add or remove on the loan
?2 There is a clause called "due on sale" which is when the title is transferred to another person without the lenders knowledge, they can call the entire loan due. I am not sure if it applies to hus/wife. Contact your lender and ask them.
?3 How high LTV? Do you know if your mortgage is owned by Fannie Mae or Freddie Mac, or possibly an FHA loan? On these types of loans, you can go over 100% financing on a refi. Cash Call also does 2nd mortgages to 125%.
Contact your bank and contact some lenders in your area to see what is available options for you.
?2 There is a clause called "due on sale" which is when the title is transferred to another person without the lenders knowledge, they can call the entire loan due. I am not sure if it applies to hus/wife. Contact your lender and ask them.
?3 How high LTV? Do you know if your mortgage is owned by Fannie Mae or Freddie Mac, or possibly an FHA loan? On these types of loans, you can go over 100% financing on a refi. Cash Call also does 2nd mortgages to 125%.
Contact your bank and contact some lenders in your area to see what is available options for you.
Hi campingcple,
The spouse should sign a quitclaim deed and transfer the property to you. This will make you one of the owners of the property. However, it won't remove him from the mortgage. You will have to refinance the mortgage in your name in order to remove him from the mortgage. If there is a due on sale clause mentioned in your mortgage docs, then the lender can ask you to pay off the loan in full.
Thanks
The spouse should sign a quitclaim deed and transfer the property to you. This will make you one of the owners of the property. However, it won't remove him from the mortgage. You will have to refinance the mortgage in your name in order to remove him from the mortgage. If there is a due on sale clause mentioned in your mortgage docs, then the lender can ask you to pay off the loan in full.
Thanks
>>I also heard that the lender has the right to ask for the full balance once a quitclaim deed is filed... is that accurate?
Yes. It's never a good idea to modify Title when there's a Mortgage on the property.
Yes. It's never a good idea to modify Title when there's a Mortgage on the property.
@Raymond--To your point, I suppose that a lender could demand a full balance when a quit-claim occurs, but would it serve them to do so in this market? Especially when people are struggling and most homes are under water.
In my case, my wife and I are in the divorce process and it is our desire to fully remove her from the mortgage and deed. This way she can leave freely, and since my income is considerably greater I can carry the mortgage. I understand now that FM won't allow her to be removed from the note, but she could process a quit-claim. If FM were to call the loan as a result, I would have to default. But if they overlook the quit-claim they will still receive their regular payments.
Does anyone have any advice on how I can eventually get control of the mortgage under my name alone? My intent is to help her make a clean break AND have no further ties. She cannot afford the house but I can. It's under water at this point with no homeowner equity. LTV is around 150% based on best guess (off-the-record) from a local appraiser, so FM will not allow a refi at this time. Aside from "walking away", any suggestions are appreciated.
In my case, my wife and I are in the divorce process and it is our desire to fully remove her from the mortgage and deed. This way she can leave freely, and since my income is considerably greater I can carry the mortgage. I understand now that FM won't allow her to be removed from the note, but she could process a quit-claim. If FM were to call the loan as a result, I would have to default. But if they overlook the quit-claim they will still receive their regular payments.
Does anyone have any advice on how I can eventually get control of the mortgage under my name alone? My intent is to help her make a clean break AND have no further ties. She cannot afford the house but I can. It's under water at this point with no homeowner equity. LTV is around 150% based on best guess (off-the-record) from a local appraiser, so FM will not allow a refi at this time. Aside from "walking away", any suggestions are appreciated.
Pharma,
There is nothing that you can do, whether court order or quitclaim that will remove the X from liability to the mortgage. Signing the loan docs, you promised in good faith to repay the debt. Generally a lender will only call the loan due, if the property has been "sold" or "Transferred" to another party. You are just removing your X from title, but in any case ask your lender if she is removed, is there a possibility to call the loan due. Your only option is refinance or sell the home...
There is nothing that you can do, whether court order or quitclaim that will remove the X from liability to the mortgage. Signing the loan docs, you promised in good faith to repay the debt. Generally a lender will only call the loan due, if the property has been "sold" or "Transferred" to another party. You are just removing your X from title, but in any case ask your lender if she is removed, is there a possibility to call the loan due. Your only option is refinance or sell the home...