Posted on: 02nd Apr, 2009 01:01 pm
My fiance got a divorce from his wife in Dec 08 and the divorce decree said she had 3 months to refinance the property to get it out of my fiance's name. The company which she is refinancing the house through is telling my fiance that he must sign the warranty deed before the loan can be paid off. From my past experience, I know this to be false, I was told never to sign the warranty deed over until after the loan has been satisfied, can you please help?
Hi kathyblevins,
I believe both of them are listed on the title. Well in that case, the lender might not be willing to refinance the loan in her name with your fiance still owning an interest in the property. That is why I think they asked him to give up his interest so she could be the sole owner of the property and the lender will have no problem in foreclosing in case of a default. However, before signing on any deed make sure you have a legal evidence in writing where she promises to refinance the mortgage as soon as the deed is signed.
I believe both of them are listed on the title. Well in that case, the lender might not be willing to refinance the loan in her name with your fiance still owning an interest in the property. That is why I think they asked him to give up his interest so she could be the sole owner of the property and the lender will have no problem in foreclosing in case of a default. However, before signing on any deed make sure you have a legal evidence in writing where she promises to refinance the mortgage as soon as the deed is signed.
This is usually done at the closing and would become apart of the closing package provided by the lender. I have never heard of the lender requiring anyone to sign over their their interest in the property before the loan is finalized. What happens if she loses her job and can't qualify any longer?
I was told that the state of Texas just changed the laws regarding this issue and that it is now required that the warranty deed be signed over before a refinance can take place. Has anyone heard of this supposedly "new" law?
Thanks so much for your responses, I really appreciate it!!
Kat
Thanks so much for your responses, I really appreciate it!!
Kat