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tccain95 · Mar 14, 2007, 06:43 PM

I am married getting divorced. My home loan financing is in my name but the title has both names. Is there any way to transfer the loan to my wife and her assume the loan with no obligation to the loan from me? I want to be free and clear of this and my credit got us a good interest rate so if we could do this then it would be great and if not we may have to sell the house. If this couldn't work do you have any suggestions on any other routes we can take. Thank you.

clover23 · Mar 14, 2007, 07:09 PM

Originally Posted by tccain95

I am married getting divorced. My home loan financing is in my name but the title has both names. Is there any way to transfer the loan to my wife and her assume the loan with no obligation to the loan from me? I want to be free and clear of this and my credit got us a good interest rate so if we could do this then it would be great and if not we may have to sell the house. If this couldn't work do you have any suggestions on any other routes we can take. Thank you.

Hello, tccain95. I've been a mortgage consultant in WI for 5 yrs. I'm nt sure of the terms of your loan, it's rate, or the laws of your state, but here's a general overview and possible course of action:

If the mortgage note (bill) does not allow the debt to be assumed by a person NOT on the loan, it must be refinanced to transfer the loan to your soon-2-b-x-spouse. Most lenders will not let this be done until the divorce is final - they do not want to be exposed to a potential divorce battle.

If your state is a community or marital property state, and this home is considered marital property, even if the mortgage did allow it to be assumed by your (wife), you would need to be "quit claimed" OFF the title policy to quit (cancel) any right and or claim to any interest in the property.

Depending on your (wife's) credit, she may be able to assume the loan @ the same terms you now have if allowed by the mortgagee (lender); if her credit is not comparable yours when you obtained the loan, she'll get what she QUALIFIES for.

Question: is equity in the home being divided? If not, the equity position MAY help her get a decent/comparable loan even if her credit isn't as good as yours.

HBombToo · Mar 16, 2007, 10:19 AM

Originally Posted by tccain95

I am married getting divorced. My home loan financing is in my name but the title has both names. Is there any way to transfer the loan to my wife and her assume the loan with no obligation to the loan from me? I want to be free and clear of this and my credit got us a good interest rate so if we could do this then it would be great and if not we may have to sell the house. If this couldn't work do you have any suggestions on any other routes we can take. Thank you.

Since you are probably considered joint tenants in common your wife would have to apply and qualify for a loan under her name only.

I went through this same thing as a younger man but in my case I have a VA loan which is handled much easier for the Vet rather than the typical conventional loan.

HBomb

Fr_Chuck · Mar 16, 2007, 10:29 AM

Yes she will have to apply for her own mortgage and pay this one off.