I'm planning to separate from my husband but we're stuck in a home that's worth less than what we owe so we can't sell it right now. I figured out that it would be cheaper for me to stay in the house and rent out a portion of the home and have him move out vs. rent the whole house out. If I rent a portion of the house out and stay there, I want to negotiate that he's removed from the deed and that I would be fully responsible for the home (mortgage, future gains/losses). If he agrees to that, can we remove him from the deed without refinancing? I can't refinance because I won't qualify for the loan without him. Help!

No, you will have to get the proper documentation evidencing the separation and have him sign off on the Dower Affidavit (has no interest in the home). You will have to get re-approved and qualify if you are to be the only one on deed. Deed must be consistent with the Mortgage and visa versa... you may also have to consider qualifying for a larger amount to settle it out with your husband.

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Originally Posted by RallisonW

I'm planning to separate from my husband but we're stuck in a home that's worth less than what we owe so we can't sell it right now. I figured out that it would be cheaper for me to stay in the house and rent out a portion of the home and have him move out vs. rent the whole house out. If I rent a portion of the house out and stay there, I want to negotiate that he's removed from the deed and that I would be fully responsible for the home (mortgage, future gains/losses). If he agrees to that, can we remove him from the deed without refinancing? I can't refinance because I won't qualify for the loan without him. Help!

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At the moment if you default the mortgage company (or bank) can legally pursue both of you. If you take him off the Deed they are left with just you. You have to advise them of any changes in the Deed. If you don't and they find out, they will pull the financing and force a sale.

No, they won't allow you to take him off the Deed.

Your only choice is to refinance or leave it the way it is, joint.

You shouldn't be negotiating this by yourself. An Attorney should be making sure that distribution is equitable in both directions.

You can during the divorce get him to sign the deed over to you, but he will remain on the mortgage, and while the divorce papers will say that you are responible for the debt, if you don't pay the mortgage company can still come after him. Thus as a husband in a divorce I would never do this, since I could still be forced to pay mortgage, and then have to try and get it back from the ex. But some ex's do sign the deed over anyway everyday.

My husband and I are divorcing and our house is worth less than what we owe. We don't have any money. I know we're not the only ones in this situation... what are people doing in this situation these days? (This is a follow-on to an earlier posting).

Bankruptcy, walking away and leaving it, trying to get a short sale.
Or one partner trying to keep it and live in it.