Ok..here's the problem... My bf is in a tough situation...lost his job on my birthday and was stuck with a $900 + mortgage when the ex left 6 months ago. He wants to sign the house over to her and find a cheaper place. So the question is, if he does this and she doesn't make the payments, does it still reflect on his credit or does he have nothing to do with it after that point?? I'm in the process of looking at places less than $600 a month for us but really can't go forth with anything until we/he really knows what to do. Thanks for your help! SunShine
I think it will reflect till they are officially divorced and no legal ties bind them.. and tread carefully with alienation... not sure why ex left 6 months ago he doesn't want to dig a deeper hole... good luck..
Thanks....I will let him know. She left bc she fell into drugs and alcohol really bad and he wasn't "supporting" (financially) her habit.
I hope they don't have children involved, that makes it tougher at times... you will get more replys here later I'm sure on this... Good luck with this to the both of you...
No, no children together thank goodness. That's one less thing I have to worry about. Thanks for your help. I'm looking forward to the other advice/replies as well.
So if he leaves the house to her, how is she going to make the mortgage payments when she is supporting her other habits. Why not sell the house and split the profits.
He can not just sign it over, she would have to redo the loan soley in her name to get him off the loan.. and the way it sounds is that she probably can not do that, so the only way to get his name off the loan will be to sell the house! Good Luck
yep, she'd have to refinance to get him completely unobligated and attached to the house. Sell it, split any profits.
Sassymom and KellBell are correct, it certainly will reflect on his credit if she doesn't make the payments. For him to no longer be liable, he needs to get his name completely off the mortgage, and there are a couple of ways to do that. One is by selling the house and paying off the mortgage, the other is by refinancing in her name only. Would she even qualify for a mortgage by herself? He needs to sell the house, even if it only brings enough to pay off the mortgage.
A friend of mine just went through this. Her and her husband seperated but he wanted to stay in the house so she moved out and got her own place and pay her rent each and every month no problems. Then he moved out of the house and moved in with this girl and quit paying the mortgage and put the house up for sale when the house sold she was suppose to get all the money cause he owed her so much for back support (loser) and then she found out he hadn't paid the mortgage for something like 10 months so she lost most of the money she should have gotten from the sale of the house.... He needs to go ahead and sell it and get his name off of it before his credit is shot to he!!---
Mortgage companies and banks do not recognize divorce decrees. Like some people stated before he would have to take his name off the mortgage by paying it off or having her refi it in her name only. He signed the original note he will still be responsible for it.
Just be careful. He may be able to assign the mortgage to her, or to anyone, but that assignment does not release him from liability, even if his name is no longer on the house. "If a buyer assumes an existing mortgage of a seller, the buyer has agreed to be liable for this mortgage. The seller (old mortgagor) is also liable. Upon default, the mortgagee can sue either party." It doesn't matter that he doesn't actually 'sell' her the house. If she is also on the mortgage, he can get out from under his liability on the note by filing for bankruptcy. Or he can assign it to her and file, but I think under assignment you have to wait a certain number of months before filing for bankruptcy for hit to count for the note. I agree, he should just sell the house, even if he has to do a short sale. In the mean time, call the mortgage company and let them know the situation. They may be able to put a freeze on the loan or convert it to interest only for a while, so that he can afford the payments.
It is correct that she will have to refinance the house in her name only in order to get him off the loan. But he will also have to sign a "quit claim" deed over to her as well to get him off the deed. Then he will be free and clear. We have people that do this alot when coming in for bankruptcy consults in our office. Best of luck!!!
This is true - she has to refinance. Oh and he has to give up everything. She gets everything. He pays through the butt for a few years. She buys all new stuff while he lives in a crappy apartment with cinder block furniture. She gets Time Warner, he gets rabbit ears. She gets a new car, he gets the old truck with 200K miles on it. At least this is how I would imagine something like this working out.......:cuss:
Good point, because up there the home is already in foreclosure and they have nothing to split in the first place! :lol:
But since the mortgage is in both names, wouldn't they each have to agree to sell the house? What if one party does not want to sell?
When me and my ex split I sold my half of the house to him. We had to go to a lawyers office and refinace and I got a check that day, and my name was taken off.
It's not the mortgage but the deed that controls, but yes, they will both have to sign in order to sell it. She would be crazy to refuse, and he can probably get a court order if she won't go along.
