The situation becomes more complicated if the mortgage is only in the deceased spouse's name. The surviving spouse can often assume the mortgage, but this process may involve credit checks and lender approval. If the surviving spouse cannot assume the mortgage, other options must be explored to prevent foreclosure.
No, you can not add anyone to a mortgage without refinancing. Exactly why do you want to burden your new wife with a mortgage?
If you want to keep the house and don't have enough equity to do a cash-out refinance or the money to pay your ex their share, the solution might be a home equity line of credit (HELOC) or home equity loan.
You need an order from the Court to remove him. If you have one listing the home as yours, you have to refinance. He would then be removed from the loan. Or sell the home. You'd file for contempt if he won't sign the forms to come off.
A loan assumption or modification could release a co-borrower from your mortgage without refinancing, preserving the current homeownership. However, lenders aren't required to grant these options, so be prepared to negotiate.
For example, borrowers typically face application fees, appraisal fees and other closing costs that can total between 2% and 5% of the mortgage principal. Maintain original interest rate: A primary incentive to remove someone from a mortgage without refinancing is to keep the original interest rate.
If you and your ex-spouse's name are on the mortgage, you will both be held liable for the mortgage unless you refinance it out of their name.
How does divorce financially affect women? Generally, women suffer more financially than do men from divorce.
Refinancing After Divorce. There are two ways to remove a divorced partner from a mortgage: obtaining a release of liability from the lender or refinancing the mortgage.
You can take legal action against them for breaching the agreement you both made or seek a court order to force the sale of the property. It's important to consult with a lawyer to understand your legal rights and options and to make the best decisions for your situation.
To remove your spouse's name, you may need to provide a death certificate to the mortgage company and refinance the mortgage in your name only. Refinancing could potentially lower your interest rate or monthly payments, but it may also involve costs such as closing fees.
In many cases, the spouse can inherit your house even if their name was not on the deed. This is because of how the probate process works. When someone dies intestate, their surviving spouse is the first one who gets a chance to file a petition with the court that would initiate administration of the estate.
The short answer is yes, though you want to understand the pros and cons of getting a mortgage without your spouse.
Both ex-spouses take a loss, but typically, men suffer a larger hit to their standard of living than women — between 10 and 40% — due to alimony and child support responsibilities, the need for a separate place to live, an extra set of household furniture and other expenses.
Because California is a community property state, if the couple bought the house while they were married, they both have an ownership stake in it, and neither can compel the other to leave.
If Your Spouse Isn't Paying the Mortgage
The bottom line is that your soon-to-be ex remains just as financially responsible for your shared mortgage as he or she was before (even if only you are living there while your divorce is pending).
Answer: If your ex-spouse refuses to refinance the mortgage, you may have several legal options available to you. You can file a lawsuit, file a motion with the court, or try to negotiate an agreement with your ex-spouse.
Adding a person to your mortgage without refinancing can only work if the mortgage is assumable. Federal Housing Administration (FHA) loans tend to be assumable, but other types may not be.
Mortgage Loan Assumption
Mortgage assumption is where a lender agrees to allow a borrower to take over responsibility for an existing mortgage from the current borrower without a new loan. The lender may charge a fee to assume a mortgage.
The lender of the original mortgage must approve the mortgage assumption before the deal can be signed off on by either party. The homebuyer must apply for the assumable loan and meet the lender's requirements, such as having sufficient assets and being creditworthy.