Question on my mortgage and the ex-wife

[David]

My divorce was final in 2012, I kept the house, and the final divorce agreement states that . The mortgage is in both our names and I'm trying to get my ex-wife’s name off the loan. My bank is telling me I have to reapply for the loan with all the costs associated with that. I don’t see why they can’t just take her name off the loan and be done with it.

The options I see are to pay the bank for the new loan origination fees, take out a new loan (refinance), or just pay off the loan. I only have 4 years and 7 months left on the loan so I’m thinking of just paying it off if there are no options that don’t involve new loan fees.

Any suggestions?

[id10t]

WHen my brother divorced, he got to "keep" the house but he had to get the ex's name off the mortgage within 5 years. Is there a timeframe specified?

If not, I'd search around for the lowest cost of refinancing (credit union maybe?). Or, if you really have the spare cash, just pay it off.

[Evans, Marv]

Sounds like the bank is trying to squeeze you for what they can get, thinking that would be your only option. So you only have the two options if you want avoid costs of refinancing or a new loan. Those are to continue to pay until it's paid off or pay it off. If the interest rate is low, I'd find out the potential risk/implications of having your wife's name on the loan and continue to pay if there's no possibility of a problem. If there is some risk you want to avoid and can pay it off, do that. I'm always in the camp that says go for the "no debt" status. There are probably others here who will have better ideas.

[Gogar]

Meet with the loan officer and tell them you want her name removed for free,

If he says no, request a payoff amount and see if he changes his mind.

If not, pay that sucker off!

[Seahawk]

Odd. I owned a house with two other guys when I was single. When one of the guys transferred we did a Quit Claim.

Can One File a Quit Claim Deed Without Refinancing the Mortgage? | Home Guides | SF Gate

[1990C4S]

What is the disadvantage of having her name on it?

She should be the one asking to be removed, so maybe it should be her cost?

[SeanPizzle]

The bank sees your wife as being liable for the mortgage right now. If you want her off, you will need to qualify for a new note on your own. The simplest way to deal with this is to pay it off. You need to get her name of the deed, so quit claim will need to be done also.

[David]

It doesn't look like the Quit Claim takes away their responsibility on the loan. I guess it really doesn't hurt me to have her name on the loan. I'd certainly be at more risk if it was my name on her loan.

[onewhippedpuppy]

Originally Posted by Gogar

Meet with the loan officer and tell them you want her name removed for free,

If he says no, request a payoff amount and see if he changes his mind.

If not, pay that sucker off!

Good approach.

[David]

I just read my Final Agreement Incident to Divorce and it states, " The husband, ME, is to receive as his sole and separate property and shall own, possess, and enjoy that property, and SHE partitions, quitclaims, assigns, and conveys to ME the following property:"

So it looks like the quitclaim is already a done deal since she signed the agreement.

[RANDY P]

You don't HAVE to do anything. She has no claim to the house if she is still on the loan. The finalized divorce decree is enough. The lender will not drop her off the loan, they originated the loan with her on the hook, and the courts cannot make the lender drop her off their loan, they want her on there still.

The only person who gets hurt in this deal in reality is the Ex- she can't do anything with getting a new house since she still has a mortgage under her name, if she tries to qualify for a new loan, they have to count the OLD mortgage against her DTI, which usually means she's ****ed.

If you are a nice guy- pay off loan with cash, if you are not, just insist you can't refi and that's that. Continue paying the note.

rjp

[GWN7]

More important than her name being on the loan is her name on the title?

[Evans, Marv]

Then it's most likely not a problem. If the Quitclaim is already done, you (or the bank) should most likely have at least a copy of a deed with only your name on it or the Quitclaim giving you sole conveyance. I doubt the bank cares if you tell them to remove her name or you'll pay it off, since with only four years left, you're paying almost all against the principal anyway. My take is the Agreement can say she quitclaims the property to you, but it's not official until the actual paperwork has been filed with the County or whatever entity has jurisdiction over those things and been distributed to those concerned upon their request.

[RANDY P]

Divorce decree trumps all- it's a frekin court order. If that's what it says, she's not entitled to the house. She can't do anything to the home as long as that divorce decree exists- she can't lien it, she can't sell it she can't do anything, really.

Bank is the bank, the house is the house. You can have a loan under two names but official ownership under one, and vice-versa. It's not like a car title.

[john70t]

Originally Posted by David

My divorce was final in 2012, I kept the house, and the final divorce agreement states that.

My bank is telling me I have to reapply for the loan with all the costs associated with that.

(Person opinion only. Not a lawyer)
1). A local Judicial Ruling would establish true ownership.
a). There are no contests on record from the wife.
b). The rest is paperwork.

2). The national bank does business locally through a local branch.
a). That branch would have to comply with local/state laws determined by judicial rulings.
(/Person opinion only. Not a lawyer)

The settlement with the ex-wife sounds mutually-amicable, and I hope it stays that way, well beyond this specific time of chaos and change.

Only minor paperwork to sort out now.
Hope it goes well.

[David]

Thanks guys. Sounds like I can leave her name on the loan but get her name off the deed. If she needs to apply for a loan then I'll look at paying it off.

[Rot 911]

There are several partially right answers already posted. First, a divorce can't terminate the rights of a third party creditor. In this case the bank. They want to keep her name on the loan because if you default they can go after her.

Next, while your order states she is to quit claim her rights over to you, that is not the same as her actually executing a quit claim deed. Normally a judgment will say something like "Property XYZ is awarded to husband. Wife to execute a quit claim deed relinquishing her rights to said property. Husband, within X number of days of receipt of filing of the quit claim deed, is to refinance said property." It appears none of that has yet happened.

Right now your ex is still responsible for the debt on the property, but she also has an ownership interest in it. You need to contact your divorce attorney and find out if the quit claim deed was ever executed. If so, find out if it was ever filed with the recorder of deeds.

Texas has some pretty draconian property laws. Right now you can't even sell the property without your ex's permission. I doubt the bank will even let you refinance in your own name with out a copy of a filed quit claim deed.

[Oracle]

Get her name off the mortgage or you when you sell she gets to sign and things can get ugly...
Also you will need a re-title the property so prepare to pay more.


She's out of the house and must be out of your life.. having that piece of mind is priceless... there is already enough stuff with kids, family, friends, etc..

[june82000]

Originally Posted by David

My divorce was final in 2012, I kept the house, and the final divorce agreement states that . The mortgage is in both our names and I'm trying to get my ex-wife’s name off the loan. My bank is telling me I have to reapply for the loan with all the costs associated with that. I don’t see why they can’t just take her name off the loan and be done with it.

Wasn't she a co-applicant on the Mortgage? If so, then that's why. They based the loan on both of your incomes. You will have to reapply for a new mortgage on your own. Good Luck.

[BE911SC]

Originally Posted by id10t

Or, if you really have the spare cash, just pay it off.

That.