Profile picture for bdeliso

Getting a mortgage on a home I already own - but getting divorced

I am getting divorced.  I am on the deed, but not on the mortgage.  My husband is willing to sign the house over to me.  As I understand it, I would just need to get a mortgage for the outstanding balance of the current mortgage.  

So would be applying for a new mortgage or a refinance?  Can I use the equity in the house to pay off any outstanding debts?  Will the equity be considered a down payment?  will I need to pay closing costs as well?

Thanks
  • August 09 2012 - Barclay-Kingston
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (2)

Profile picture for Mortgage Brothers
You may have an issue.  Cannot treat this as a purchase transaction since you are already on title, and you may fail to meet "continuity of obligation" requirements to do it as a refinance since you are not a borrower on the current mortgage. 

Continuity of obligation is a Fannie Mae / Freddie Mac requirement on all refinance transactions.  Will research further and post another reply tomorrow morning. 

For information purposes, is there a specific reason you are not a borrower on the current mortgage on the property?
  • August 09 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for GMerino
For all refinance transactions, a continuity of obligation must exist.  One of the following conditions must be met:

There is at least one borrower obligated on the new loan who was also a borrower obligated on the existing loan being refinanced - not you

The borrower has been on title and residing in the property for at least 12 months and has either paid the mortgage for the last 12 months or can demonstrate a relationship (relative, domestic partner, etc.) with the current obligor - this is you

The borrower has recently inherited or was legally awarded the property (divorce, separation). this may be you

If you have any other questions, feel free to reach out to me. 

Geofrey Merino
  • August 09 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.