Ask Me Help Desk - How can my ex transfer the mortgage loan to me?

I had lived in this house previously with my 1st husband for 3 years and the title and loan were in both our names. When we divorced, he signed a "quit claim deed' then the title and loan were in my name for about 5 years. My 2nd husband then moved in and took over the title and loan because the debt my 1st husband and I incurred which left me with very poor credit. We basically didn't want the creditors to be able to put a lien on the house. So for two more years we lived there until we decided to move to a bigger house and kept the other one as rental property. After about 4 years, which is now, my 2nd husband and I are now going through a divorce. I can't afford to live in the house I'm in now and my soon to be ex-husband offered to transfer the loan of my 1st house to me. The current amount still owed on that house is approx. $40,000 and the current value of the house is approx. $130,000 which would make it affordable for me to live in. But because I have bad credit, how can this transfer be made so that the title and loan are in my name? Can it be done having poor credit? Or will I need someone else, like a family member with good credit take over the loan? I just need to know what needs to be done for me to live there? Please, I need your help. :confused:

If the bank will accept assignment of the loan to you, it can be done. If they won't then you have to refinace in your name. With the equity you have in that house, there is a good possibility you can find a lender or have the lender agree to the assignment. Even with poor credit.

So your first option is to meet with the current mortgage lender and see what they say.

Bummer!

Anyway, a Quit Claim Deed doesn't release anyone from the loan. It only takes then "off title". They still have the loan as an obligation.

What do you have against creditors putting a lien against the property ? You borrowed money, didn't you intend to pay it back? Of course you did, because otherwise it is fraud. And we are certain you wouldn't want to be accused of that.

Oh, so now you tell us that you moved to a BIGGER house and wanted to defraud the creditors, I'm confused.

What are you doing to the poor people who have lent you money in good faith?

Anyway, what you want can't be done in this market. Could have been done a couple of years ago, but that's what brought on this bad market.

Thanks for nothing.

I'd suggest selling and getting what you can,
And spend some time looking up the definition of "ethics".

Quote:

Originally Posted by pacific nw

bummer!

Anyway, a Quit Claim Deed doesn't release anyone from the loan. It only takes then "off title". They still have the loan as an obligation.

What do you have against creditors putting a lien against the property ? You borrowed money, didn't you intend to pay it back? Of course you did, because otherwise it is fraud. And we are certain you wouldn't want to be accused of that.

Oh, so now you tell us that you moved to a BIGGER house and wanted to defraud the creditors, I'm confused.

What are you doing to the poor people who have lent you money in good faith?

Anyway, what you want can't be done in this market. Could have been done a couple of years ago, but that's what brought on this bad market.

Thanks for nothing.

I'd suggest selling and getting what you can,
and spend some time looking up the definition of "ethics".

WHOA! Where did you get this stuff from? The OP did say; "We basically didn't want the creditors to be able to put a lien on the house", but it was obvious she was not referring to the mortgage lenders. Lots of people now are finding themselves overwhlemed by credit card debt and want to protect their homes. I think you were WAY too harsh on the OP. Sometimes that is appropriate, but not in this case In my opinion.

Quote:

Originally Posted by ScottGem

WHOA! Where did you get this stuff from? The OP did say; "We basically didn't want the creditors to be able to put a lien on the house", but it was obvious she was not referring to the mortgage lenders. Lots of people now are finding themselves overwhlemed by credit card debt and want to protect their homes. I think you were WAY too harsh on the OP. Sometimes that is appropriate, but not in this case IMHO.

If you reread the post, they moved to a BIGGER house and kept the other property as well. Whether the debt or lien is from credit cards, a vacation, or whatever, it is still debt incurred (presumably in good faith) and should be repaid since there are assets (ie, a SECOND home) Nope, this stinks of greed pure and simple. For example ScottGem (and I agree with most of your posts; they are accurate quite helpful to people) If I were to borrow $10,000 dollars from you and decided that I wantd to keep my rental more than I wanted to pay you back, and I changed the title on the rental to someone else's name, how would you get your money back? I think it would be an unpleasant experience and you might think twice about lending again. Someone, somewhere lent money to these people in good faith and now there is doubt about whether they will get paid back when assets are available to do so. (Totally different matter if there are no assets, but in this case there are.)

I do understand where you are coming from, but I think you have read much more into this then is obvious. The only thing the OP said, was she and her second husband were trying to protect the home they lived in from creditors deriving from her first marriage. You don't know how much of those debts she is responsible for or whehter the first husband was taken care of them.

Second, the decision to get a bigger house was made after two years and was part of the second marriage.

I generally respect your responses, but I stand by my comments that I feel you assumed too much and were too harsh in this instance.

Quote:

Originally Posted by ScottGem

I do understand where you are coming from, but I think you have read much more into this then is obvious. The only thing the OP said, was she and her second husband were trying to protect the home they lived in from creditors deriving from her first marriage. You don't know how much of those debts she is responsible for or whehter the first husband was taken care of them.

Second, the decision to get a bigger house was made after two years and was part of the second marriage.

I generally respect your responses, but I stand by my comments that I feel you assumed to much and were too harsh in this instance.

ScottGem,
Thank you very much for understanding my situation. I really do appreciate you coming to my defense. You hit it the nail right on the head re: the above post.

pacific nw,
The debts that were incurred during my 'first marriage' were indeed meant to be paid back. My first husband & I worked very hard to pay them back. However, we had to prioritize who we certainly owed money to: Mortgage, utilities, food. The mtg. and utilities were always paid on time. And none of these were paid using our credit cards, but we did try to pay off as much as we could. My first husband was working two jobs and I was at home taking care of my infant son and other people's kids to earn a little more to pay off our debts. This debt ultimately lead to our divorce! Now in that situation, do you really think paying back the creditors was priority over having a roof over our heads, food on the table and having electricity and water? I was a single mother, and paid what I could afford. It certainly wasn't done purposefully.
Which leads me now to my 'second' husband. Remember, he has NOTHING to do with the debt my first husband & I incurred... NOTHING! He simply was looking out for me and himself because we didn't want the creditors going after HIS hard earned money to pay off my first husband's and my debt. He had hired an attorney which told us that there a creditor that did put a lien on the house. And per our Atty. Creditors can NOT do that in th state of Tx. And had the lien taken off the house. My second husband then took over the title and loan for that house because 1, he could easily afford it, and 2, I stopped working to finish school to ultimately get a degree that I could use for financial security if what had happened with my first husband were to happen again. NOW, the bigger home that we eventually moved into was actually a home my 'second' husband had purchased cheap (owners abandoned it), he refurbished it, and used it as rental property... this was his before we got married and we didn't move into it right away because there were renters living in it and because that would also mean having my son switch school districts (complicated, but if you need further explanation, ask later. I feel like I'm having to explain more than I have to already in order for pacific nw to understand.)

I didn't want to have to explain all of this in my original post... I didn't think I had to. But since pacific nw actually thinks this was a situation that was intentionally done out of greed, you are so very wrong. I do however know that there are people like that, but I am not one of them. Have some compassion and don't be so quick to judge a person especially if you don't know the whole story. So, with pacific nw's first post, instead of being critical, why not ask more questions first? I didn't think I had to share my life story. I just needed advise, not criticisms. So for pacific nw... thank YOU for nothing. For ScotGem, thank you for your understanding and your advise. After all, I thought that's what this site was for.