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Experience with Assumption of Loans?
Anyone do this before, or know how they work?
xH and I share a home. We are both on the mortgage and both on the deed. He is assuming the mortgage for our home. I wonder if part of the process is that I now HAVE to sign over the deed when he assumes the loan, or if it's just what usually happens because the couple splits?
Re: Experience with Assumption of Loans?
We went through this process. From what I understood (and experienced), he walked away from the mortgage and the house, free and clear. I assumed the loan and the deed in it's entirety.
I don't believe there is any way he could not have signed over the deed, but I'm not positive there is not a loop hole out there.
Hmm. It is possible to be on the deed of a home and not on the mortgage, correct? So I'm just wondering if that can still hold true here, or because there was a process of him assuming the loan and releasing my liability, that I now HAVE to sign the deed over to him.
Any mortgage brokers around here??
Yeah it sounds like you don't want to sign over the deed--why not? It is possible to be on the mortgage but not on the deed, but why would your H be assuming the mortgage if you weren't putting him on the deed to the house?
It's not that I don't want to sign over the deed, I just want to know if I have to because of the assumption? He would remain on the deed as well. So, can the end result be that he assumed the loan and we are both on the deed? Or am I required to quitclaim the deed over to him since he assumed the loan?
I'd ask your attorney. I'm not sure if you HAVE to but it's probably what most people do because if 2 people are splitting up and one is staying in the house and assuming the mortgage, there's no reason for the non-paying non-residential spouse to still have ownership rights to the house.
While you may not be required to put the house in his name alone based on him assuming the mortgage, you might be required to do so as a term of your divorce. If he's living in it and paying for it, you don't have a right to it (unless he agrees to this or leaves it to you in his will).
The only advice I can give so far is that you will want to make sure that the Assumption of the Loan also provides the Release of Liability fo you. If not, your H may stop paying down the road and the default can actually come back to you since you were originally responsible for this loan. You'll want to keep a copy of the release because if he refi's or anything along those lines in the future, the next financial institution may not receive that release for their records so they would still see you as responsible if your H defaults if you can't provide a copy of the release.
We had the pre-approval done in September. We moved forward in November and are still in the same place. They are asking for additional financial documents and explanations. I am unsure how long this will actually take.
The letter that he wants me to sign basically states to remove me of any liabilities of the mortgage of the property. It states that he occupies the house and he promises to continue to pay and assume the mortgage by himself. It is a letter that he drafted that the mortgage company told him to draft. After we both sign it, I guess then we will receive a packet in the mail requesting additional information. I am just worried that I would be taken off just the deed and not the mortgage if this falls thru.
Did you have an attorney review the letter? You want to make sure that the language is clear that you are in no way financially responsible for the property. The mortgage company doesn't care to protect you, they want to make sure they are paid if someone defaults.
Also, just don't sign the quitclaim deed until the assumption is final. He can't take you off the deed without your consent.
No, I have not. I haven't seen an attorney yet, but plan on seeing one for a consultation.
That would be a completely wise decision on my part, because I think the quitclaim is a lot simpler of a process than the assumption it seems. However, in the email he said that the mortgage company would want a copy of the quitclaim, divorce papers, etc...why would they care about the quiclaim- does it really pertain to them?
I would definitely meet with an attorney on your situation prior to signing anything. The quitclaim deed is just a form that will now only list him as (I believe it's Grantee) but I can't remember the title for certain to reflect that you have been removed. So that is much easier because there is no risk involved in who 'owns' the home.
For the ssumption to be complete they need the quitclaim deed and divorce papers from us as well. That's the part I'm hung up on. My xH is trying to have me sign the assumption and quitclaim then file. I don't think that's in my best interest because then when we file, it will read that he owns the house outright and I am entitled to nothing as far as the home (where if we file first with the house in both our names, it reflects that I'm owed $ for equity, etc) so I am confused. I would like to NOT sign the quitclaim deed, at the very least, prior to filing that way there is no question as to my ownership of the home. This is why I was wondering if I HAVE to sign when the assumption is complete or if I can remain on the deed until we file and receive our divorce decree.
i had to do this because i was keeping the house and XH was on both the mortgage and the deed. we also had to get a ROL from the VA for him.
I found a quit claim deed on the county records sight (call you county recorders office, they can offer help and tell you what you need to file the quite claim deed). i copied the deed and put in our info, there were also 2 other forms that were required for NJ (GIT/REP-3 and RTF-1)
XH was on the deed until the divorce was final. I did all the paperwork to get him off the deed and then the mortgage after i had the divorce decree...the assumption i was doing needed the VA ROL and the quit claim deed before they would take his name off the mortgage.
i wouldn't sign anything until after the divorce is final and you have a copy of the decree and the MSA.
i don't think the mortgage company will do the assumption with out the deed first....at least mine wouldn't. they sent me a packet that explained everything they needed and i'm pretty sure the divorce decree was part of it as well. so he's not going to get his way regardless.
It cost me $260 or so to file (I'm in sussex county) and then he had 30 days to respond. but he filed the next day for the appearance so we could just be done with it and i had a court date 10 days later. the $260 was worth it to just get the divorce moving. but if you don't care about the time line and he does then hold out for him to pay the filing fee/s...
Well the filing costs specifically are $300, and then $50 to get my name back.. but we are supposed to be going through my attorney with only me being represented which is $1500. We agreed to go this route that way the paperwork is correct and we both don't have attorney fees. Now, he has changed his mind about splitting the full $1800.
In this case, I feel like it's going to legally come down to him needing the decree and deed before the assumption, so it looks like someone else will tell him that it has to go my way in order to be done right. I'll hold off for that. From what he's telling me (who knows if its accurate at this point) the approval should be completed in a few weeks at most.
Mind me asking how much the assumption cost for you? He's telling me it'll be 1700 for us.
since my loan was a VA loan and under my VA eligability, it was $50. If it had been a regular loan, then they said it costs around $900, but each bank is different. they said the assumption once complete and received, could take 60-90 days but was closer to a month