buyout agreement???

[RDHGrlQ]

Massachusetts
I am buying my husband out of our house with a mortgage refi. We are in agreement about the terms, and as we are not divorcing at this time, just separating without any official legal agreement (he is moving away), so we don't have lawyers. Everything is pretty amicable and we have agreed in detail upon how to take care of the equity in the house between us. I have someone who is willing to draw up the quitclaim agreement, but the underwriter is saying I also need a "buyout agreement" for which the bank's attorney wants to charge me a pretty stiff fee. This refinance has been ongoing with this bank for probably close to 2 months and this is the first time this has been mentioned to me, although the situation has been exactly the same and they have been aware the whole time. According to the underwriter I have already been approved for far more than I am asking for, although she continues to ask me for additional documentation of various income related things. What is a "buyout agreement", why do I need it and why was it never mentioned to me this whole time? Also, is there a way to get it prepared without paying a ton for it? I can't even find evidence that there is such a legal document as a "buyout agreement" so I'm pretty baffled by this sudden need for one by the bank!
Any help much appreciated!

 

[LdiJ]

Massachusetts
I am buying my husband out of our house with a mortgage refi. We are in agreement about the terms, and as we are not divorcing at this time, just separating without any official legal agreement (he is moving away), so we don't have lawyers. Everything is pretty amicable and we have agreed in detail upon how to take care of the equity in the house between us. I have someone who is willing to draw up the quitclaim agreement, but the underwriter is saying I also need a "buyout agreement" for which the bank's attorney wants to charge me a pretty stiff fee. This refinance has been ongoing with this bank for probably close to 2 months and this is the first time this has been mentioned to me, although the situation has been exactly the same and they have been aware the whole time. According to the underwriter I have already been approved for far more than I am asking for, although she continues to ask me for additional documentation of various income related things. What is a "buyout agreement", why do I need it and why was it never mentioned to me this whole time? Also, is there a way to get it prepared without paying a ton for it? I can't even find evidence that there is such a legal document as a "buyout agreement" so I'm pretty baffled by this sudden need for one by the bank!
Any help much appreciated!

If you were in the actual process of divorce you would have a divorce agreement to provide them that shows that you are getting the house. If you were doing a legal separation your would have a separation agreement that shows that you are getting the house.

The bank wants something to show that all of the equity in the house is going to belong to you and that they will not have to also deal with your husband if something goes wrong. You are going to need an attorney to draw something up. Most likely it would be best to let the bank's attorney do it since he will know exactly what the bank needs. Otherwise, you will need an attorney of your own to do it. How much is the attorney asking?

 

[RDHGrlQ]

Thank you for responding

The bank attorney is asking $350. Which may not seem like that much, but until my husband leaves and I can get a roommate, since I am (and have been for almost a year) paying both halves of all the house expenses plus my own expenses, I'm pretty cash poor. Also, I'm already paying the bank attorney to do their bit of the refi, so it seems a little like double dipping I guess. Isn't him signing the quitclaim proof that he is in agreement? He would attend the closing and sign whatever anyway...

 

[LdiJ]

The bank attorney is asking $350. Which may not seem like that much, but until my husband leaves and I can get a roommate, since I am (and have been for almost a year) paying both halves of all the house expenses plus my own expenses, I'm pretty cash poor. Also, I'm already paying the bank attorney to do their bit of the refi, so it seems a little like double dipping I guess. Isn't him signing the quitclaim proof that he is in agreement? He would attend the closing and sign whatever anyway...

If the bank wants a buyout agreement then you will have to do a buyout agreement. Its that simple. If you want the refi you have to give the bank what they want.

 

[RDHGrlQ]

ok

so they can demand a legal form that doesn't actually seem to even exist, that they've never mentioned before, but that they suddenly decided after 2 months that I need? do they have the legal right to ask for anything that they want? I'm surprised that there wouldn't be pretty distinct regulations about what they can and can't ask for, not just "whatever they want", especially after all the mortgage lender shenanigans of the 2000's. That's a bit like extortion. I'll go talk to the bank and see if they can be more reasonable.
thanks for your help with this

 

[LdiJ]

so they can demand a legal form that doesn't actually seem to even exist, that they've never mentioned before, but that they suddenly decided after 2 months that I need? do they have the legal right to ask for anything that they want? I'm surprised that there wouldn't be pretty distinct regulations about what they can and can't ask for, not just "whatever they want", especially after all the mortgage lender shenanigans of the 2000's. That's a bit like extortion. I'll go talk to the bank and see if they can be more reasonable.
thanks for your help with this

Of course they can ask for whatever they want to ensure that they can safely lend the money. The previous shenanigans were due to the fact that they did not ask for enough.

I do not understand why you are so upset about this. I realize that you do not want to spend the money but just because there isn't a preprinted form for something doesn't mean that it doesn't exist. If you were selling the house to a third party or buying from a third party you would have a purchase agreement.

So, divorce = divorce agreement, separation = separation agreement, third party sale = purchase agreement, why do you think that your one particular situation doesn't require some sort of agreement?

 

[STEPHAN]

You have another option: Get financing elsewhere and pay of your bank. Once they get the money, they will not ask for anything.

You will however need a lawyer or a title company for the closing, this will most likely cost more then 350.

 

[RDHGrlQ]

not trying to argue with you, really just wanted friendly, nonpatronizing advice

because him signing the quitclaim covers it, it's redundant. My point was they don't get to just freehand make up the rules at will anymore, there IS regulation at this point due to their previous lack of transparency and responsible lending. and of course they can't reasonably ask for ANYTHING they want, that's patently absurd. can they ask for paperwork proving my gender, or a picture of all my freckles, or bloodwork proving I'm human? there are always limits on what is and isn't appropriate to require in any transaction.

 

[Zigner]

because him signing the quitclaim covers it, it's redundant. My point was they don't get to just freehand make up the rules at will anymore, there IS regulation at this point due to their previous lack of transparency and responsible lending. and of course they can't reasonably ask for ANYTHING they want, that's patently absurd. can they ask for paperwork proving my gender, or a picture of all my freckles, or bloodwork proving I'm human? there are always limits on what is and isn't appropriate to require in any transaction.

The problem is that your use of absurd examples doesn't reflect the fact that what they are asking for is entirely understandable and, if they didn't ask for it, they would be violating their fiduciary responsibility.