Should I have to sign for a cash out refinance loan so that my ex can pay off first loan & take my name off first mortgage. In my divorce decree it just states that the ex is to refinance within six months or the house comes back to me. I feel like this is somehow allowing them to use my credit even though i have been told i wouldnt be held responsible for the loan. I was also told that if it was just a straight refinance i wouldnt have to sign but since they are getting cash back it will require my signature.
2006-07-18 09:21:28 · 4 answers · asked by Lucky me 1 in Politics & Government ➔ Law & Ethics
hi brandy,
it really depends on what it is that you are being asked to sign...
is it actual loan papers, or is it a quit claim deed? Basically anyone on a title of a property has to continue on title of property if a refinance is being done, unless a quit claim deed is filed before hand...
are you trying to get off the mortgage and the title of thi home? if so, you ask to sign the quit claim deed, and have your ex PUT IN WRITING THAT SHE WILL REFINANCE IN "X" AMOUNT OF MONTHS TO TAKE YOU OFF THE FIRST MORTGAGE...EVEN THOUGH THE DIVORCE DECREE STATES ONT THING, THE BANK OR LENDER DOES NOT HAVE TO FOLLOW IT...THEY HAVE LEGAL PAPERS SAYING BOTH OF YOU ARE OBLIGATED TO THIS LOAN....
So, the only way to get off completely is to get off title FIRST then your ex has to refi!!!
I will stress again GET IT IN WRITING THAT YOU BOTH ARE IN AGREEMENT THAT YOUR EX WILL REFINANCE TO GET YOUR NAME OFF THE LOAN AND RELEASE YOU FROM OBLIGATION...
If you both try to refi, and sign new loan papers, then you are obligated to the loan...EVEN if you do a quit claim deed after a refi, all that means is you lose ownership of the property, unfortunately you will still be OBLIGATED to the loan unbless you follow the steps above...
I am a licenses mortgage banker, and have dealt with many situations similar to yours... If you need anymore advice, or if you have any need to either refinance or purchase a home in the future, feel free to call me...
My name is Jason Fry, i work with Providential Bancorp, a nationwide mortgage lender.. call me at 312-264-6448. or email me at jasonf@providential.com
thanks, and I wish you the best!
2006-07-18 10:24:13 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The proposal doesn't make any sense. It sounds like she is asking you to be a co-signer on the loan without being on title. If you so sign, you might be obligating yourself to repay the loan if she defaults. This may also negatively impact your credit if you are listed as a co-borrower or co-guarantor. You should have your lawyer review this proposal carefully before you sign anything.
2006-07-18 09:48:32 · answer #2 · answered by Carl 7 · 0⤊ 0⤋
I had the same situation with my ex having to refi and pay me I never had to sign anything. If I were you I would consult my attorney that handled the divorce. Be careful, and good luck!
2006-07-18 09:40:15 · answer #3 · answered by Badkitty 7 · 0⤊ 0⤋
You should call the attorney who handled your divorce. You don't want to make a mistake that could haunt you for a long time and just because they say it "won't" doesn't mean it won't.
Call your attorney.
2006-07-18 10:00:00 · answer #4 · answered by vbrink 4 · 0⤊ 0⤋