Posted on: 25th Oct, 2010 11:55 am
My wife and I purchased a home in 2003 for $89000. It was a VA loan, so only my name is on the mortgage. We split the mortgage costs 50/50 for the first 5 years, but I've been paying the full mortgage for the past 2 years since she's a stay-at-home mom and doesn't have as much time to work.
She told me a few weeks ago that she wants a divorce and now we're trying to figure out the options on the house. We both want her to keep the house so the kids don't have to move and she'll need to remain a stay-at-home mom for at least the next 2 years until both the kids are in school.
The estimated value is $100k, our current mortgage balance is $73k. We would like to have her buy me out of my interest ($15k), but her bank told her that we don't have enough equity in the home for her to re-finance it. My bank said she could probably get an FHA loan and buy the property directly, but then I would owe 6% of the cost on closing.
I've worked very hard the last 2 years to clear up my debt and increase my credit score, so don't like the idea of maintaining ownership while she lives there, pays the mortgage and takes care of any improvements needed.
We've considered doing a quitclaim deed where I would give her the house and then she would pay me the $15k over a specified time and we could set that up in the separation agreement. We were thinking we could exchange my child support payment towards that amount, but I'm not sure she can afford to make the mortgage payments and pay her other bills without child support payments. She makes around $40k/yr. and I make around $50k and we're estimating that child support would be around $900/mo.
The other idea is that I buy her out and then she'd have to buy a smaller house, move the kids and that's not the ideal situation.
Anyone have any ideas, suggestions, etc??
TIA!!
She told me a few weeks ago that she wants a divorce and now we're trying to figure out the options on the house. We both want her to keep the house so the kids don't have to move and she'll need to remain a stay-at-home mom for at least the next 2 years until both the kids are in school.
The estimated value is $100k, our current mortgage balance is $73k. We would like to have her buy me out of my interest ($15k), but her bank told her that we don't have enough equity in the home for her to re-finance it. My bank said she could probably get an FHA loan and buy the property directly, but then I would owe 6% of the cost on closing.
I've worked very hard the last 2 years to clear up my debt and increase my credit score, so don't like the idea of maintaining ownership while she lives there, pays the mortgage and takes care of any improvements needed.
We've considered doing a quitclaim deed where I would give her the house and then she would pay me the $15k over a specified time and we could set that up in the separation agreement. We were thinking we could exchange my child support payment towards that amount, but I'm not sure she can afford to make the mortgage payments and pay her other bills without child support payments. She makes around $40k/yr. and I make around $50k and we're estimating that child support would be around $900/mo.
The other idea is that I buy her out and then she'd have to buy a smaller house, move the kids and that's not the ideal situation.
Anyone have any ideas, suggestions, etc??
TIA!!
hmm...no input on this, eh?? bummer
hi brianwpiper!
welcome to forums!
if your wife is unable to pay for the mortgage, then it doesn't make sense to transfer the property in her name. if she is unable to refinance the mortgage and pay off the mortgage dues, it will have a negative impact on your credit report. in such a situation, you and your wife should go for the second option. you should buy her out and she can move into a smaller home with the kids.
feel free to ask if you've further queries.
sussane
welcome to forums!
if your wife is unable to pay for the mortgage, then it doesn't make sense to transfer the property in her name. if she is unable to refinance the mortgage and pay off the mortgage dues, it will have a negative impact on your credit report. in such a situation, you and your wife should go for the second option. you should buy her out and she can move into a smaller home with the kids.
feel free to ask if you've further queries.
sussane