Posted on: 30th Jun, 2008 06:53 pm
is novation still possible to do? my ex-husband and i still own an investment property together. we put it up for sale to no avail and probably owe more than it's worth now. it's currently being rented to one of his friends, with the hope they will buy it in the future. however, they have a bk and foreclosure on their credit and it could be a few years before they could qualify to buy it. i just don't want to be financially responsible for it anymore. he can't refi the home into just his name and i’m scared that this is going to turn into a huge ugly mess down the road. do you have any suggestions?
hi tkfoye,
welcome to forums.
neither refinance nor a novation would be possible here because your ex-husband will perhaps not qualify, given the fact that he has bankruptcy and foreclosure on his credit. so, is it possible for you to make monthly payments using the rental income? then you can ask the ex-husband and his friend to accept a lease-to-purchase option so that after a few years they can buy the property and as of now, they need to make monthly rental payments so that you can repay the loan.
thanks
welcome to forums.
neither refinance nor a novation would be possible here because your ex-husband will perhaps not qualify, given the fact that he has bankruptcy and foreclosure on his credit. so, is it possible for you to make monthly payments using the rental income? then you can ask the ex-husband and his friend to accept a lease-to-purchase option so that after a few years they can buy the property and as of now, they need to make monthly rental payments so that you can repay the loan.
thanks
My ex doesn't have the BK/foreclosure, it's his friend that's renting the home.
Welcome Tkfoye,
His friend also cannot be able to refinance or get approve for novation because of the bad credit. He needs to improve his credit first. I feel if this a assumable mortgage and you are willing to sell the property to your ex-husband's friend then he may be able to assume the mortgage. But for that also he needs to improve his credit.
Let me know if you have further queries.
His friend also cannot be able to refinance or get approve for novation because of the bad credit. He needs to improve his credit first. I feel if this a assumable mortgage and you are willing to sell the property to your ex-husband's friend then he may be able to assume the mortgage. But for that also he needs to improve his credit.
Let me know if you have further queries.
Hi guest,
Welcome back to the forums.
I agree with you here. If your ex's friend wants to buy the home now, it may not be possible because of the foreclosure and bankruptcy. So, for the time being, you can use the rental income to pay for the loan. Will it be enough for the payments?
Is your ex on the loan or the both of you? if you too are there, then possibly you can refinance into a lower rate and then it would be easier for you to pay off loan using the rent. I know you wouldn't like to continue with the payments but they can't buy right now. So, this looks to me as the only option.
Take Care
Welcome back to the forums.
I agree with you here. If your ex's friend wants to buy the home now, it may not be possible because of the foreclosure and bankruptcy. So, for the time being, you can use the rental income to pay for the loan. Will it be enough for the payments?
Is your ex on the loan or the both of you? if you too are there, then possibly you can refinance into a lower rate and then it would be easier for you to pay off loan using the rent. I know you wouldn't like to continue with the payments but they can't buy right now. So, this looks to me as the only option.
Take Care