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helpme2010 · Sep 21, 2009, 07:17 PM

Help help help. Over the last 6 months, every banker I've spoken to in person or on the phone has given me different information.
My divorce went through 7/7/09. My house is upside down due to all the forclosures in the area.
I gave the house to my husband in the divorce decree, but he laters said he was going to have to walk away from it because he couldn't afford it, so we did a quick claim deed and the house is mine now because I am slightly better off but I also cannot afford the house payment on my own as it is and we cannot sell it.

I want to do what I can to save it. I received a packet in the mail from my bank stating that I would need to do a loan assumption before I can do a loan modification. It states that I "may" qualify and that I have to pay out $900 plus some other fees.

If I do this and I am denied am I just out $900? Is there any other avenue I can take to be able to get his name off and apply to have my loan modified? I am also trying to find a roommate, but that too seems to be a dead end right now. My last resort will be that I have to walk away because I have no choice. It is sad that we were up almost 200 grand and now we are down 40 grand.
Any information would be very appreciated
Thank you

Cedarln2265 · Sep 23, 2009, 02:07 PM

How did you "give" the house to your ex husband in the divorce proceedings? Did he assume the home loan in his name only? Is your name still on the home loan paperwork? This is being asked to help you with an answer

Cedarln2265 · Sep 23, 2009, 07:18 PM

Apologies for not completely understanding your question. What I was thinking was what was the tradeoff for him getting the house? Since the loan is in both your names still, couldn't he pay part of the fee for the transfer? Yes it is iffy, given the loan modification nowadays. I would ask what is the benchmark for income for the loan at all. A realtor can do that for you. You could also check to see if a realtor could help you with this. They do know who to talk too. Good luck

Addi38 · Sep 24, 2009, 12:08 AM

Do you mean Loan Restructure?
What that does is either reduce your interest rate on your or increase your payment terms. Either way, it will reduce your monthly amortizations. Though you will have to pay certain bank charges and service fees since this will be treated as a 'new' transaction.
Loan assumption is getting someone else to pay your mortgage and you end up owning to him rather than the bank.(sry, it sounds funny but I do think that's how it is)

helpme2010 · Sep 25, 2009, 05:08 PM

Thank you for your responses. Sorry the information was unclear. In my divorce decree the house was given to my husband, but both our names are still on the loan. A mortgage specialist said we may as well forget trying to get it refinanced into his name because it would cost a lot of money and we most likely would not qualify. My now ex took money out of his 401K to help pay down our debts and I was to receive most of it as a trade off for him keeping the house. He changed his mind because he was going to have a new car payment and could see being able to afford to stay in the house so we did a quick claim deed and he signed the house over to me. Both of us are still on the loan and we thought we'd have to leave it like that, but I was then told he would have to get off the loan if I want to apply for a loan modification to bring down my payments. The banker said in order to do this I would have to do a loan assumption and I later found out it would be $900 plus to do this and there is no guarantee that it would be approved and if it is not I cannot do the loan modification. It is a catch 22 because I need to be able to afford to pay the mortgage to get the assumption and therefore the modification, BUT I can't afford it on my own which is why I need the modification in the first place.