We purchased our home 4 yrs ago. We are getting a divorce. He wants to put the house on the market and sell it. I want to remain in the house, love the area, do not want to move. Is there a way that I can borrow from our mortgage company to pay my spouse off? Thanks!
2007-06-30 09:04:01 · 7 answers · asked by Samantha 1 in Business & Finance ➔ Renting & Real Estate
Assuming that you don't have ready cash to buy him out, about the only thing that you can do is re-finance the home in your name only and take out enough additional cash to buy out his equity. Your ex would normally quitclaim his share to you as part of the loan closing process. Mortgage lenders and title companies (or attorneys if local practice is to use an attorney for closing) are familiar with the procedures, it happens quite often.
If you have little or no equity in the home, his half of little or nothing won't be much. If your loan is assumable with qualification, the lender may be willing to allow you to assume the mortgage in your name only if you have adequate credit. Again, he would quitclaim his rights to you as part of the closing process. This would be the quickest and simplest "walk away" available for you and your ex.
2007-06-30 09:12:27 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
Yes, you can simply refinance the home, use some of the equity in the home to take extra cash out of the refinance, and pay him his share of what you have agreed to pay him. You will need to qualify for the refinance by yourself obviously if you will be the only one on the mortgage. This is done quite often during or after divorces where one spouse keeps the house and is required to refinance to give his/her share to the other spouse. You can also simply take out and equity line of credit or a second mortgage as well to pay your ex. off. Check out the pages below about refinancing.
2007-06-30 09:12:41 · answer #2 · answered by dzwreck 4 · 0⤊ 0⤋
Only pay off would be any equity that has gained since you purchased the place. If the house is 100% financed, and is valued at that amount or less, you owe him nothing since there is no profit. If selling the house only results in paying off the mortgage have it put in your name and assume the payments. Speak with your lawyer he/she will be in a better position to handle this
2007-06-30 09:10:29 · answer #3 · answered by Pengy 7 · 3⤊ 0⤋
When I split with my ex, I kept the house. I refinanced in my name only and cashed out 1/2 the equity in the house to pay him his share. You will definitely want him off the title at this point so he can't come back later to claim any part of future equity on the house. My ex signed a Quit Claim Deed. It isn't enough just to refinance on your own, he has to be removed from the title of the house.
2007-06-30 09:45:07 · answer #4 · answered by neffer 4 · 1⤊ 0⤋
hopefully either their is enough equity in the house or you have good credit which would allow you to refinance release him off the mortgage and be able to pay him off for his part
if not an option most likely you will have to sell, maybe after you could by a smaller house in the area
2007-06-30 09:07:44 · answer #5 · answered by goz1111 7 · 0⤊ 0⤋
Yes! Go & see your motgage advisor & see about a remotgage with another lender to buy your spouse out of his half of the property. Tell him why you want to remortgage because there are some lenders out there who don't lend to single buyers. Be honest with your advisor & let him know how important it is that you need to keep the house, he should already have some idea how much the property is worth & how much your spouse is likely to expect. Give serious thought to all types motgages, even Interest only motgages , because your only bound for 2 years & then you can remotgage again to a better deal that suits you & your pocket.
I went through exactly the same with my ex wife & done the advice i've said above, & i have kept my home (interest only motgage) but, i got to keep my home & she got her money .I hope this helps a little to spur you on to do it
Best of luck & i hope it all turns out for you ..
2007-06-30 09:38:41 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If you are getting divorced and you are keeping the house you would want to get him off the house anyway. He should also want to get his name off the mortgage because how you make payments could affect his credit as well. So all in all you would want to refinance and at that time you can pull the cash out that you need to buy him out, get the loan out of his name and put your name as sole owner of the property.
If you are in CA I would be happy to help you with this or if you have any further questions, please feel free to email me. I actually specialize in this area.
Good luck during this hard time.
2007-06-30 09:16:51 · answer #7 · answered by lenderjayne 3 · 0⤊ 0⤋