Can I make my ex turn over loan in my name since I was awarded house from our divorce & deed's in my name?

Question

I have had a quick claim deed w/ my name as owner of the house going on 5 yrs. now. He originally put the loan in his name only because of my bad credit at the time. Now I have better credit and want to assume the loan so that when I decide to sell the house, I won't have to deal with him for the equity made frome the sale (which he is legally not intitled to any). It is a V.A. loan. He is in the U.S. military. I was told through the bank that all he needed to do was fill out the paperwork recieved from the V.A., transfering the loan over to me. I have informed him of this and he has not made one step towards it. Every time I remind him about getting it done he always says that he will get around to it and never does. I'm tired of waiting on him to handle this and want to know if there was a way that I could get it done without him scince I was awarded the house and have been paying the mortgage on it for the past 5yrs now? He told me that he doesn't think the V.A. will let him do it.

Answer 1

You have some serious issues to address here. First, your ex does not have to agree to turn the loan over to you, since he will lose any future eligibility to take another VA loan if he does so. However, he currently is responsible for the payments and will remain so indefinitely, should you default on the payments. Secondly, if you have been paying interest and principal on a loan in HIS name, you are not legally entitled to deduct the interest payments on your federal income tax return since you are not legally liable for the debt. That liability is still in the hands of your ex-spouse. Thirdly, if he does agree to let you assume his loan, that decision is subject to VA approval, based upon your credit history. If the VA elects to not allow it, you are stuck getting totally different financing from an alternate source. Assuming you used an attorney in your divorce action, how did this situation slip by, and be allowed to happen ?

Answer 2

Why cant you try and renegotiate a new loan...and have VA paid off? Then the new loan will be in your name only.... Moreover, if you already have a Quit Claim Deed from the court awarding you the home his signature wont be necessary when selling the home. Consult with your Escrow company for further details....