This might not be good....

[3girls2luv]

Well DH never took his XW off the title to his house even though it was in his divorce decree that she gave him the house and he gave her her part of the equity.

Well now that we are trying to buy a house he finally decided to take her off and well it's not as easy as he thought.

They have to run his credit and it is already a few points low. They want $500 for assumption of title or something like that, $50 for a credit report check.

The worst part is that if his credit does not pass then she stays on the title.

I really don't know WTF all this means. Does that mean she still owns part of the house? Is this going to scew up our chances of buying a house? Can we loose our house?

If anyone on here has any experience with this or advice it would really help. DH is going to call the mortgage company that we have been talking to about buying a new house and see what she says. Ugh please tell me this is not as bad as I think it is.

[Candi]

hmm, I have heard about it on the other end but not yours. Did she sign a "quite claim deed"? If she did then she still has liablity in the house but no rights to it.

It is more of a problem for the ex. It is still on her credit report. If your DH would do a forecloser that would also be on her credit report. She would have a hard time buying a house with a mortgage already on her credit report.

From his end, I don't think it is as big of a deal. There is a possibility that he could get contempt of court for not doing what he was supposed to do if his Ex wanted to do that. But basically he could sell the house, forclose, whatever.

[irisheyes81]

They really should have dealt with that when they were settling the divorce. Technically, she still owns the house, but since it was in their agreement that she gave him the house, I do not see it standing up in court. Their agreement was in writing, right? I do not see how this would cause you to lose the house, though, or in anyway effect buying another house. The only problem I foresee is if she decides to be difficult when your husband does go to remove her name. I do believe she has to sign over the house to your husband; he cannot just take her off.

[irisheyes81]

It is more of a problem for the ex. It is still on her credit report. If your DH would do a forecloser that would also be on her credit report. She would have a hard time buying a house with a mortgage already on her credit report.


That is if she was on the mortgage. I am on the deed to our home, but not the mortgage.

[irisheyes81]

I did a quick legal forum check. If a Quit Claim Deed was filed during the divorce, her name should have been removed from the title by the deeds recorder back then.

[Candi]

But it would have been wise of her not to sign a quit claim until the house was refinanced, other wise she is still liable for the mortgage.

[irisheyes81]

Edited: They should have dealt with the quit claim deed when he paid her the half of the value of the home that was hers. At that point, she was agreeing to give up all interest in the home (ownership and financial). Selling the home is not an issue in this case, because she has already been paid off (if I am understanding the OP correctly). She is still owner of the home, though, since she seems to have not signed a quit claim and is still listed as an owner on the title of the home. Again, if it is written in the divorce settlement paperwork, it really should not be an issue. Though, if you do go to sell your home, she will need to sign over the house along with your husband (if he does not have her taken off before then).

ETA: I would consult with your husband's attorney on this, just to make sure all your bases are covered.

[3girls2luv]

I talked to a realtor and she said it could hurt us if she decided to be difficult but she won't. It is going to be difficult for her to buy a house (which she is trying to do) since she is on the title. If DH takes her off he will have to refinance the house and that screws over because we are trying to buy a house. Bottom line is we need to sell the house like now so his XW can buy her house and we can buy ours.

I totally agree that he should have taken care of this when they got divorced. We are awaiting a call from a realestate lawyer to see what NEEDS to be done legally.

[Candi]

Is she on the mortgage too? ... ETA: nevermind, she must be if she is on the title

[3girls2luv]

Yes she is listed on the mortgage. The lawyer wants to meet with us next week with a deed of trust, divorce decree, and the deed to the house.

[Candi]

Usually in divorces the one person has to refinance or sell the house. Can't he just sell the house instead of refinancing first?

[3girls2luv]

That is what we are going to try to do. Our house is just about ready to go on the market, we just has a few cosmetic repairs to do and clean out the garage.

[irisheyes81]

If she will not cause any problems, I do not see how her name being on anything will hurt your buying a new home. Now, when my mom and her fiance (now husband) were purchasing a home, I know that my stepfather bought the home in his name and later added her name to the deed (she is not on the mortgage to their home). I do not believe it had anything to do with her owning a home with my dad at the time, but I guess it is a possibility that was a factor. I cannot imagine that would be the case, though, if she is willing to sign off on a sale and you two are approved to buy a new one.

[3girls2luv]

It won't hurt us buying a new home but unless we sell it, it is going to hurt her because she is on the title and according to DH she is also on the deed.

[irisheyes81]

Honestly, I do not think you can really do much about her getting hurt by the situation right now. It seems strange that they did not do the Quit Claim and refinance when your husband paid her half of the equity at the divorce. Usually, the pay-off is not made until the house is refinanced/sold, in which case the Quit Claim is also filed, removing the "paid-off" party from all ties to the home. Your husband is trying to sell the house, which will remove her ties to the house; until then, I do not see much else that can be done. She had just as much opportunity to correct the situation back than as your husband, and she did not. You and your husband seem to be doing everything you need to do at this point.

ETA: If you can not sell, would it not be possible to refinance the home with both you and your husband on the new mortgage (of course, transferring the deed from his ex and him to you and him)? If you qualify to purchase a new home, I would imagine you qualify to refinance the old home, right?

[JudyJudyJudy]

It won't hurt us buying a new home but unless we sell it, it is going to hurt her because she is on the title and according to DH she is also on the deed.
I think when you're saying "title," you mean mortgage. Getting her off the deed (which some people call the "title") wouldn't be hard at all if she simply signed a quit claim deed. The problem here is that she is on the mortgage and that your dh's credit may not be good enough to carry the mortgage alone. Could the two of you refinance with you on the loan as well? Or could you get the mortgage for your new house in your name only?

[3girls2luv]

We could refinance the house but the realtor said that would not be a good idea to do since we are trying to buy a new one.

[JudyJudyJudy]

Can you get the new mortgage in your name only?

[3girls2luv]

Can you get the new mortgage in your name only?


Would that mean we would have to refinance? That is what we are trying to avoid.

[JudyJudyJudy]

I mean the mortgage for the new house, not the one you're living in now.

[3girls2luv]

We will probably be going that route when we get the new house but we really need to sell this one first because it will be really hard to pay two mortgages right now. We could do it but I really really don't want to be that tight money wise.