Posted on: 30th Mar, 2010 06:57 pm
my brother from austin, texas just got a divorce from his wife. in the divorce decree, he stayed with their home while she kept a rental property. in order for him to refinance and qualify for a new loan on the house, he needs to transfer his claim on the rental property so that he can qualify to refinance his home. what does he have to do? does this require a quick claim deed? does a lawyer prepare this? after transferring the claim he has on the rental unit, does this bring down his debt to mortgage ratio that may then qualify him to refinance?
Welcome laurawilmot,
In order to transfer the rental property to his ex-wife, your brother needs to sign a quit claim deed. He can take the help of a lawyer in order to draft the deed. Simply transferring the property won't reduce his debt to income ratio. The ex-wife will have to refinance the loan. Once she does so, your brother won't be liable for it any more and it won't be considered while calculating his debt to income ratio.
In order to transfer the rental property to his ex-wife, your brother needs to sign a quit claim deed. He can take the help of a lawyer in order to draft the deed. Simply transferring the property won't reduce his debt to income ratio. The ex-wife will have to refinance the loan. Once she does so, your brother won't be liable for it any more and it won't be considered while calculating his debt to income ratio.
If he's on the mortgage, she will have to refinance and pull him off the mortgage as well.
If he's on the mortgage, she will have to refinance and pull him off the mortgage as well.