Aldeer.com Forums Alabama Deer Talk Aldeer General Forum Yes, this is a thread about a woman ...

my ex-wife.

In the divorce settlement I was awarded the house. I'm being told by the mortgage company that I can't have her name removed from the mortgage, deed, etc. without a refi which I don't want to do at this time.

I am asking a serious question from anyone who actually knows something about it, i.e. a lawyer, judge, seller of mortgages, etc.

Am I being told the truth? How do I simply get her name erased from everything without having to refi?

The response I should have gotten from the mortgage company is "Oh you got divorced and the house was assigned to you Mr. Smells? Very good just prove that with the proper documentation and we will handle the rest!" I think they are just trying to sell me a new mortgage and I wonder about the legality of what I'm being told. She never would say it was required by law only that it was required by company policy. How does company policy override the sovereign decree of the State of Alabama?

If it turns out that that's just the way it is then so be it but I'm cynical and skeptical by nature and no mortgage lender is going to miss an opportunity to make a buck. I can't blame them for that because that's why they are in business but if it turns out they are lying to me, well that's a whole different thing.

Please advise with actual knowledge if you possess it.

I had to refi to my ex's name off my mortgage so I'm sure theyre telling you the truth. It worked well because I got a little lower interest rate and I didn't have to show them any divorce papers to do but would have glad to do so if they required it

"How does company policy override the sovereign decree of the State of Alabama?" It was Alabama law that let you down. It don't mean crap if you were awarded you still have to make it happen. Good luck! you can do it.

Yes you have to refinance.

Yes, you have to re-finance. Rates aren't too high are they?

No I'd actually get a lower rate. I intend to refinance but I'm not ready to do it now. When I do I will pull some of the equity out but I don't yet know exactly how much I need and don't want to refi until I do. I would however like to get it all in my name only. Looks like I'll have to wait a bit more.

Rates are only going up....

The original loan terms assumed there were two people who could pay for the mortgage. They want the option to make a different deal now that it's just you. The bank just wants their money. $$$$

Yes, you have to refi to get her name off the mortgage.

When I went through mine, I had my ex-wife sign a quit claim deed for the Lowndes property I owned and I signed one for the house so she could get my name off the mortgage so she could have it. I'm pretty sure the mortgage company had to have that and a copy of the divorce decree refi for her.

Dr. B

yes, quit claim deed then refi

The mortgage company is viewing her as basically a co-signer, who can be held financially responsible for the loan, should you stop paying. The only way she could be removed is to renegotiate the terms, just like you would if she was a co-signer on an auto loan. It sucks, but that’s the way it is.

How do you pull equity out when refinancing?

I'm not giving advice and it may be just how I am, but I'd shop around for the best rate, refi, and get her off the mortgage ASAP. You shouldn't lose any equity and it is one more thing off the checklist to sever the legal union. It would drive me nuts to have a house that my ex's name is still on. Also, it sucks but you have to think about stuff like if you or she dies or is incapacitated and you both are on the mortgage, there may be legal issues there.

Dr. B

Well I've never refinanced before so I may not know what I'm talking about but I only owe around 12k on it and will probably refi for somewhere around 75k but I don't know the exact number yet which is why I don't want to refi until I do.

In that case I would just take out a home equity line of credit (in your name), then pay off the existing mortgage. That would save a bunch of closing costs.

Her name would still be on everything though and home equity is a higher rate isn't it?

That's not pulling out equity, that's borrowing your own money and paying someone else the interest.

Well I'm unaware of anyone who wants to give me 60k so then it comes down to what is the cheapest loan. Someone please educate me but it seems as if mortgage interest is less than any other interest I'd pay for any other type of loan. Heck I could run up 60k on credit cards if I wanted to but that ain't going to happen. I could get a home equity line as someone already suggested but I'll pay a higher rate for that too. So by all means please tell me if there is a cheaper way. I've never really borrowed money before except for this house.

Home equity loans are great, and depending on your tax situation you can deduct the interest. Although I believe it's been on and off the chopping block recently so it might not last forever. Interest rates are usually better too, but not as low as a mortage. You can get a line of credit and write checks on it just like a bank account. You just have to pay it back with interest.
I know some people that borrow more than they need on a refi and pay back the excess like clockwork on top of the mortgage payment. It's the best of both worlds; you get the long term, low interest rate of a mortage and the decutiblity of the interest. But, you better make sure you are disciplined or you will be paying off that short term loan over the length of your mortgage.

Smells, it depends on what kind of loan you have. A regular FHA loan, FNMA or FreddieMac fixed rate or ARM mortgage allows for one of the borrowers to assume the loan at it's current terms if the remaining borrower credit qualifies and income qualifies. If it is an FNMA or Freddie loan and has private mortgage insurance, the MI company may have to approve the assumption of the loan by the remaining borrower.
Call the phone number for the Servicing department where you make you make your payments and tell them you want to assume the loan and release the co-borrower from liability. Most of the time the problem arises because the no one in the Servicing department knows how to process the loan assumption. There will be a cost for this.In my previous life, it was about $500 for an FHA and 1% of the unpaid balance for the FNMA or FreddieMac loans. That may not be the same for all Servicers so you'll need to ask.

VA loans also allow this, but if the borrower that is being released is the veteran that used their entitlement, they don't get that portion of their entitlement restored.