Posted on: 09th Jun, 2008 10:37 am
my husband and i are going through a divorce and are trying to finalize a settlement agreement. he wants to keep the house, which is mortgaged with a va loan. he would like to assume the loan since a) it has a low low interest rate and b) his credit is in the gutter and refinancing isn't an option. selling the house right now would be difficult and he has trashed the place anyway. letting him have it and walking away is the best option right now. the va rules include: signing a quit claim deed and the actual divorce settlement agreement before they'll even review our case to determine if they'll grant him the assumption. the issue is this...i'd be signing this quit claim deed with no guarantee that i'll be let out of the loan. doesn't that seem crazy? what should i do?
welcome babydamsels,
it is a bit crazy to sign on the deed without getting any guarantee as to whether you'll be removed from the loan. i mean you don't know whether he'll get to qualify for the refinance. i suggest that for the time being, you keep paying for the loan and let him stay there till he can refinance or you find some way out to repay the loan. i know it may seem a bit tough for you but don't think there's any other way out.
it is a bit crazy to sign on the deed without getting any guarantee as to whether you'll be removed from the loan. i mean you don't know whether he'll get to qualify for the refinance. i suggest that for the time being, you keep paying for the loan and let him stay there till he can refinance or you find some way out to repay the loan. i know it may seem a bit tough for you but don't think there's any other way out.
You want your responsibility to be removed from the loan, correct? If he is unable to qualify for the loan - and if he can't now would he be able to in the future - sell the house and divide the proceeds.
