Posted on: 28th Oct, 2010 07:43 am
my husband and i were recently married earlier in the month. we both owned our own homes prior to the marriage. we decided to make "my" house our primary residence due to its location and condition. now we are wondering how to handle the finance of the 2nd house.
my husband has owned the property for about 4 years. during the purchase he was married and had a good job. unfortunately, a year or so after the purchase he divorced and lost his job due to downsizing. he became late in his payments and the company which owned his loan jacked up the interest (it is an 80/20 loan with apx 8% and 11% interest). he took a new job which paid significantly less than his previous position. we then obviously met, fell in love and were married. he recently was promoted at his job but continues to be behind in payments. we went to a large bank yesterday to find out if we could refinance in order to reduce the interest payments as i have excellent credit. unfortunately, now that my husband no longer lives at the propery we were told it was considered an investment property and we could only borrow 75% of the properties value which would not cover the amount owned on the home. does anyone have any knowledge of other options out there that we are not thinking of. we've considered just letting the property go back to the bank but i am hesitant as to whether that would affect my credit now that we are married even if i am not on his loan.
any assistance you can provide is very appreciated.
my husband has owned the property for about 4 years. during the purchase he was married and had a good job. unfortunately, a year or so after the purchase he divorced and lost his job due to downsizing. he became late in his payments and the company which owned his loan jacked up the interest (it is an 80/20 loan with apx 8% and 11% interest). he took a new job which paid significantly less than his previous position. we then obviously met, fell in love and were married. he recently was promoted at his job but continues to be behind in payments. we went to a large bank yesterday to find out if we could refinance in order to reduce the interest payments as i have excellent credit. unfortunately, now that my husband no longer lives at the propery we were told it was considered an investment property and we could only borrow 75% of the properties value which would not cover the amount owned on the home. does anyone have any knowledge of other options out there that we are not thinking of. we've considered just letting the property go back to the bank but i am hesitant as to whether that would affect my credit now that we are married even if i am not on his loan.
any assistance you can provide is very appreciated.
Hi megmyhre,
If you let the property go into foreclosure, it won't affect your credit as your name is not mentioned on the mortgage doc. Your husband can even contact the lender and apply for a deed in lieu of foreclosure. This will help him in selling off the property and he won't be liable for the deficient amount resulting from the property sale.
Take care.
If you let the property go into foreclosure, it won't affect your credit as your name is not mentioned on the mortgage doc. Your husband can even contact the lender and apply for a deed in lieu of foreclosure. This will help him in selling off the property and he won't be liable for the deficient amount resulting from the property sale.
Take care.
The best thing here is to try to sell it or rent out the property. If you really want to keep the property, then I would rent it out and have the renters basically pay for your mortgage. Once you have 12 months of good history, then you could refinance it easier or try to sell it to the renters.
If it was your primary mortgage...you could qualify for programs that would reduce your interest rate and mortgage payment. ;) But this would mean yal would have to move back to that house...
Hope this helps.
If it was your primary mortgage...you could qualify for programs that would reduce your interest rate and mortgage payment. ;) But this would mean yal would have to move back to that house...
Hope this helps.