Probably made a bad mistake

[kate554]

What is the name of your state? Missouri

My divorce is not final. When we separated, I moved out. The only way I could buy a house was to have my husband refinance and pay me half the equity. (yes, I know I didn't have to buy a house, but that's hindsight.)

He refinanced and the papers are as follows:

Loan Application:
Title will be held in what Name(s) - His name
Manner in which title will be held: A married man.
All the financial info is his.

Note:
Only his name is on the note.

Settlement Statement:
Both of our names are on the settlement statement.

I signed an quit claim and marital waiver. At the time, I was told not to sign those until I got my half of the equity. So I had to sign the settlement papers to make all that happen, which I am thinking was a mistake, because I pulled my credit report last week and the mortgage shows up as joint. So am I correct in assuming that I have no claim to the property but am liable for payments?

If that is true, and since I am not divorced, I could have him refinance again as part of the settlement, right? And does that take place before or after the divorce is final? Seems it would be after so I would have no obligation.

The other option I am persuing is that I used to work for the bank that the refi was done with, and I still have connections. I am thinking that maybe they could get me off the mortgage (if I am indeed on it) without my husband having to refi again.

Thanks in advance for any advice.

[LdiJ]

Originally Posted by kate554

What is the name of your state? Missouri

My divorce is not final. When we separated, I moved out. The only way I could buy a house was to have my husband refinance and pay me half the equity. (yes, I know I didn't have to buy a house, but that's hindsight.)

He refinanced and the papers are as follows:

Loan Application:
Title will be held in what Name(s) - His name
Manner in which title will be held: A married man.
All the financial info is his.

Note:
Only his name is on the note.

Settlement Statement:
Both of our names are on the settlement statement.

I signed an quit claim and marital waiver. At the time, I was told not to sign those until I got my half of the equity. So I had to sign the settlement papers to make all that happen, which I am thinking was a mistake, because I pulled my credit report last week and the mortgage shows up as joint. So am I correct in assuming that I have no claim to the property but am liable for payments?

If that is true, and since I am not divorced, I could have him refinance again as part of the settlement, right? And does that take place before or after the divorce is final? Seems it would be after so I would have no obligation.

The other option I am persuing is that I used to work for the bank that the refi was done with, and I still have connections. I am thinking that maybe they could get me off the mortgage (if I am indeed on it) without my husband having to refi again.

Thanks in advance for any advice.

Well, you could at least talk to the bank to find out why the mortgage is showing up on your credit report, when his name is the only name on the note. An error could have occurred.

However, yes he may need to refinance again....and that's something that you need to get handled as part of the final divorce decree.

[nextwife]

The "seller" in the transaction must always sign the HUD Settlement statement, and since you were recieving proceeds, you were treated as "seller" on the settlement statement.

If you are not on the mortgage, it should not be on your credit report.
You can easilly obtain a copy of the recorded mortgage to verify who is on it. However, as a married couple, the credit agencies may consider his mortgage liability to be your credit liability.

[kate554]

Thanks for your replies. I looked at the Settlement papers again, and I am listed with him on the 'borrower' line I'm hoping that was a mistake by the closing company. Not sure how it can be that I am not on the note but considered a borrower. The good thing is, his credit is stellar, so at least for now I am not worried about him defaulting.

I will be talking to the bank on Monday, and I hope this can be fixed without him having to refi again.

[nextwife]

Originally Posted by kate554

Thanks for your replies. I looked at the Settlement papers again, and I am listed with him on the 'borrower' line I'm hoping that was a mistake by the closing company. Not sure how it can be that I am not on the note but considered a borrower. The good thing is, his credit is stellar, so at least for now I am not worried about him defaulting.

I will be talking to the bank on Monday, and I hope this can be fixed without him having to refi again.

In many states, a lender will require a spouse to "sign off" on the mortgage on the residence. Meaning they will not do a loan unless the spouse authorizes it, because the house is potentially marital property. They need to know that you are in agreement with using potential marital property as their collateral. You may not actually be obligated under the mortgage, you may just have signed "authorizing it". See if you actually signed the mortgage.