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Should I refinance with my Ex?

Rather than sell our jointly-owned house (in WV) post-divorce, my Ex proposed that we refinance it together.  I am still living in the house and was planning to stay until it sold.  He is paying the mortgage until is sold, per the divorce agreement. 

By refinancing, he wants to get some of the equity out that he owes me from the divorce, and to take advantage of the low interest rates.  He lives out of state, so can't refinance in just his name as the house would be treated as investment property.  So he needs me to sign with him. Rather than sell in this market, he wants to hang onto the house and rent to our daughter, until he moves back from out of state when he retires in several years. 

Is this a good idea?  It sounds good to him and my daughter.  And I wouldn't have to worry about getting the house ready to sell, so that part sounds good to me.  What else should I be considering?
  • June 06 2012 - Hedgesville
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Answers (2)

Profile picture for user524806
Loan balance about $185, value about $235.  Yes, planning to move out as soon as necessary.
  • June 07 2012
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What is the loan balance and what is the value of the property? This may be a good time for you to get off the note, and have him refinance in his name.  If daughter is going to rent the property and ex is moving back in a few years, you would be planning on moving out it would seem. If he can qualify and there is enough equity, a non occupant cash out refi may still be possible  without you.
You would need to protect your interest legally so seek legal advice before you proceed.
  • June 06 2012
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