Posted on: 24th Mar, 2010 09:49 am
Before filing for divorce, my husband had agreed to build a house in Michigan (we lived in CA). He signed construction contract. Then he decided he would never move to MI and we should divorce (this is the Cliff's version). We are filing a noncontested divorce in CA. I moved to MI just recently as the house was completed and converted the construction contract to a conventional mortgage in both our names (JTWROS)- he signed mortgage papers.
In the marital settlement agreement he wants to do a quit claim. I'm concerned that the mortgage company will not like the fact that I am divorcing shortly after closing on the house. I am retired - plenty of assets but only income is the spousal support he started paying me in Jan 2010 (that was the deal - dividing assets as of 12/31/2009 and beginning SS Jan 2010). The mortgage company of course used his income for approval of the mortgage.
Here's the question - if we do a quit claim, the title company will know. Probably will contact the mortgage company. Can the lender cancel the mortgage? My husband is okay with delaying the quit claim to some unspecified date in the future. On the one hand, it might make sense to wait 6 months or so before doing the quit claim. On the other, could the lender question? My view is that until the divorce is final, there is always a chance of reconciliation (I am not interested in reconciliation but I could say that).
In the marital settlement agreement he wants to do a quit claim. I'm concerned that the mortgage company will not like the fact that I am divorcing shortly after closing on the house. I am retired - plenty of assets but only income is the spousal support he started paying me in Jan 2010 (that was the deal - dividing assets as of 12/31/2009 and beginning SS Jan 2010). The mortgage company of course used his income for approval of the mortgage.
Here's the question - if we do a quit claim, the title company will know. Probably will contact the mortgage company. Can the lender cancel the mortgage? My husband is okay with delaying the quit claim to some unspecified date in the future. On the one hand, it might make sense to wait 6 months or so before doing the quit claim. On the other, could the lender question? My view is that until the divorce is final, there is always a chance of reconciliation (I am not interested in reconciliation but I could say that).
hi mpetters,
you will have to refinance the loan solely in your name once your husband transfers the property to you with a quit claim deed. if you refinance the loan in your name, the lender will have no objections and will not cancel your loan.
you will have to refinance the loan solely in your name once your husband transfers the property to you with a quit claim deed. if you refinance the loan in your name, the lender will have no objections and will not cancel your loan.
Thanks but that means I'm subject to the prevailing rates, right? Also, I have a concern that I wouldn't qualify under today's very tight credit policies even though I have assets in investments 10 times the value of the existing mortgage. I spoke with several lenders last year who said the spousal support would be treated as income as long as there was at least 3 months of history of such support. Refinancing also means all those closing costs again.
Hi mpetters,
You will be subject to present rates available in the market while you try to refinance the loan. It is correct that while you refinance the loan, you will have to pay the closing costs again. However, it is correct that with a bad credit, you won't be able to refinance your property.
Thanks
You will be subject to present rates available in the market while you try to refinance the loan. It is correct that while you refinance the loan, you will have to pay the closing costs again. However, it is correct that with a bad credit, you won't be able to refinance your property.
Thanks
Got busy with other things - should have responded sooner. I don't have "bad credit" - my credit score is about 810. However, I understand that in today's credit market, lenders require a stream of income. I am retired and currently only stream of income is spousal support. That should qualify me for a new mortgage but my biggest concern is higher mortgage rates.