home equity lines of credit
Question
How to remove an ex wife from mortgage?
Here is my situation: I divorced 3 1/2 years ago. She left us, moved out of state and I have custody of the two boys who live with me. At the time of our divorce, she just wanted out and although I paid her her equity in the home, she did not care about her name on the mortgage. About a year later, however, she wanted to purchase her own home and wanted her name off of our second home that we had and our primary home that I currently live with with our children. Last year I attempted to due so and was approved on the second home and not approved on the main residence. Here is the problem: According to our agreement I have to attempt to refi or take her name off the mortgage. They charge 900 to remove her name and if you are not approved, you are just out the money. I can attempt to refi and pay about half of that, but the bottom line is that I am not going to qualify to either one because my debt and credit will not qualify given the current credit market. She wants me to just sell the house if I cant do either which I guess is fine but I dont think it will sell given the current market anyway. What are my options? If she pushed this thing to court can a judge order a mortgage company to remove her name? Can they fine me in some way? I am trying to do what I can do but I can not change the fact that the economy is what it is. What my plan is to try to refi with the company with the least cost to apply and then send her the denial letter. Then if that is not good enough, just put the house on the market and then I have done all I can do. If there are any professionals out there please let me know if that is a good plan. I really dont want to uproot my new wife (who is an absolute angel!!!) and kids, but I will do what is needed..
1 month ago - 5 answers
Best Answer
Chosen by Asker
You and your ex are in a very familiar problem that many divorce couples face in this current housing market where homes have lost up to 30% off their all time FMV, and the credit crunch has limited the ability to refinance ; The judge does not have the authority/ jurisdiction to force the lender to remove your ex from the loan if you can not refinance by yourself That said you should try in good faith to refinance this will demonstrate you have tried to perform as stated under the PSA agreement the (property settlement agreement) agreed to in the divorce, the fact you can not based upon factors not in your control i.e. the home value the restrictions on obtaining a loan can not be held against you I would not offer to sell, you have acted in good faith to refinance but its not an option under the current fact pattern; if she wants to force a sell let her go back into court to force the issue, she may very well have to return monies allocated in the divorce if she seeks to modify the original property settlement agreement
by goz1111
1 month ago
Asker's Rating: 
Other Answers
Generally she cannot cause you to sell the house since she's already been paid her equity. However the divorce decreee should have stated what you were to do to refi, get her name off mortgage. Isn't the angel working? Why can't you get a refi now? Your plan of applying and then sending her the denial letter sounds like it will work.
by chatsplas- 1 month ago
Relax. Your divorce is over. You got what you go,t and she got what she got. Do not let her lack of planing cause you undue worry. Assuming the decree is final there is nothing she can make you do! You do not have to refinance or sell unless you want to. If out of the kindness of you heart you want to help her by refinancing. Let her pay all the costs associated with it. DO NOT ALLOW YOUR EX-WIFE TO CONTROL YOUR MARRIAGE !!! This is not legal advice -- see a lawyer for that.
by JudgmentCARE- 1 month ago
refinance
by Alterfemego- 1 month ago
No, a judge cannot compel the lender to take her name off the mortgage. And no, the lender cannot fine you. Your options are to pay up and refinance (are you going to receive a better interest rate?) or to sell, which is probably not the best option, depending on your market. Sounds as though you have a decree that says you paid her, you did what you could, and you should not jump through a bunch of firey hoops to try to accomodate her at this time. Best of luck to you.
by godged- 1 month ago