Deed of trust to secure assumption - dangerous?

[GuyinTexas21]

What is the name of your state? Texas

STBX is staying in the marital home and buying me out with other assets.
She doesn't want to refinance, she wants to give me a deed of trust to secure
assumption, which would allow me to get the house back if she defaults.
My question is, what constitutes grounds for her being in "default"? Late payments?
Missed payments? How many? Does it vary by mortgage company? And by the time
she's in default and I can finally make a move to get it back, won't my credit already be
ruined?

Thanks!

Guy

 

[Ohiogal]

What is the name of your state? Texas

STBX is staying in the marital home and buying me out with other assets.
She doesn't want to refinance, she wants to give me a deed of trust to secure
assumption, which would allow me to get the house back if she defaults.
My question is, what constitutes grounds for her being in "default"? Late payments?
Missed payments? How many? Does it vary by mortgage company? And by the time
she's in default and I can finally make a move to get it back, won't my credit already be
ruined?

Thanks!

Guy

And what does the mortgage you signed say about this? Your credit would be tied up for many years -- you really want that? You wouldn't be able to buy another home for you if that happens. You are also risking your credit going into the toilet quite frankly. DO NOT DO IT. If she wants the house she refinances. If she doesn't want to refinance, you sell the home. That is the smart thing to do.

 

[nextwife]

There are certain loans out there (Fed VA) that have provisions for assumptions with a full release of liability available. IF you have one of these, it is possible to submit the assumption paperwork and be released from the obligation. You COULD make your agreement subject to a lender agreeing to FULL release of liability. If that is NOT available, then insist on a refi if she wants to keep the place.

BE advised that leaving that loan out there with anything less than a full assumption will negatively impact your credit score and borrowing ability for the duration of the loan, if paid without default, and for years beyond the loan, in the event she does default.