Posted on: 14th Jan, 2010 04:23 pm
my sister divorced her husband and left their house. he has been making payments for 4 years; she has paid nothing. he now wants to refinance the mortgage with a cash out of $50,000. he says he will then give her 50% ($25,000) to refinance in his name only and she walks away with no obligations for the house. does this transfer the property fully to him? does something about this sound shady? also she left 3 teens and has not been financially responsible for them either. can he come after her for past child support now?
Hi Guest!
Welcome to forums!
A property cannot be transferred though refinance. It only helps in transferring the mortgage from one person to another. If your sister's husband refinances the loan in his name, then he will be solely responsible for it. Your sister will have no liability towards the mortgage. If the property deed has her name, then she will have to sign a quit claim deed. Thus, she will not remain the owner of the property any more. If she was liable for the child support and if it was mentioned in the divorce settlement, then he may ask her to pay it to him.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
A property cannot be transferred though refinance. It only helps in transferring the mortgage from one person to another. If your sister's husband refinances the loan in his name, then he will be solely responsible for it. Your sister will have no liability towards the mortgage. If the property deed has her name, then she will have to sign a quit claim deed. Thus, she will not remain the owner of the property any more. If she was liable for the child support and if it was mentioned in the divorce settlement, then he may ask her to pay it to him.
Feel free to ask if you've further queries.
Sussane
Thanks for the reply, Sussane. So you are saying that if my sister signs a quit claim deed and then her ex-husband refinances the house in his name only, she will no longer have any responsibility for it or the mortgage? And the mortgage company will give her half of the cash out - free and clear? This sounds too good to be true...
Hi Pdenk,
In my opinion, the mortgage company will not give her the half of the cash out. Your sister may receive her portion of the cash out when the property is sold off. Also, it should be noted that if the property is transferred in the husband's name, then he would become the sole owner of the property. In that case, your sister may not be able to claim her share of money from him.
Thanks
In my opinion, the mortgage company will not give her the half of the cash out. Your sister may receive her portion of the cash out when the property is sold off. Also, it should be noted that if the property is transferred in the husband's name, then he would become the sole owner of the property. In that case, your sister may not be able to claim her share of money from him.
Thanks