Assumption

[Brookenstein]

What is the name of your state?CA

Sorry, my baby hit the enter key before I typed my message...

We bought a house in August. My husband now wants a divorce. We have 0 equity and would lose money if we try to sell it. I am fine with him keeping the house and don't expect anything for it. Initially I was told by the lender (World Savings) that it would be easy to remove my name from the mortgage. They said an assumption was best (over refi, as we have a prepay penalty).

Today when I called to get more information, the woman told me we couldn't do it until after the divorce is final in case the judge awarded me the home. I asked why I was told before I could do it, and then she muble jumbled a bit that I could do it, but it wasn't in my best interest and I needed to consult an attorney.

I guess I'm trying to figure out the best way to go about this. My husband and I are completely amicable and are trying to figure out how to separate/divorce the best way possible and not make mistakes that could cost us $$ or our friendship later. I will be relocating to OR (all of our family is there) so we thought it was best to have the house and our other debt separated before we relocate. Based on the advice here and the Family Law Assistance Center at the courthouse, I am going to get residency in OR and then co-petition for divorce there. Is it wrong for us to get the assumption and also change the deed before we divorce?

[Ciarraine]

Originally Posted by Brookenstein

What is the name of your state?CA

Sorry, my baby hit the enter key before I typed my message...

We bought a house in August. My husband now wants a divorce. We have 0 equity and would lose money if we try to sell it. I am fine with him keeping the house and don't expect anything for it. Initially I was told by the lender (World Savings) that it would be easy to remove my name from the mortgage. They said an assumption was best (over refi, as we have a prepay penalty).

Today when I called to get more information, the woman told me we couldn't do it until after the divorce is final in case the judge awarded me the home. I asked why I was told before I could do it, and then she muble jumbled a bit that I could do it, but it wasn't in my best interest and I needed to consult an attorney.

I guess I'm trying to figure out the best way to go about this. My husband and I are completely amicable and are trying to figure out how to separate/divorce the best way possible and not make mistakes that could cost us $$ or our friendship later. I will be relocating to OR (all of our family is there) so we thought it was best to have the house and our other debt separated before we relocate. Based on the advice here and the Family Law Assistance Center at the courthouse, I am going to get residency in OR and then co-petition for divorce there. Is it wrong for us to get the assumption and also change the deed before we divorce?

No, it's not wrong. If you can't get the assumption done, however, maybe you should consider looking into refinancing. World Savings is a subprime lender, so perhaps by refinancing you would be able to lower the rate.

[Brookenstein]

Do you have to qualify for an assumption? I'm not working, so my income is not relevant, but the woman mentioned needing a copy of a separation agreement or divorce decree. I assume that is for child support/alimony figures. Can we get an assumption without providing that? He will be able to pay me child support and still make the house payment, but I'm not sure if he would meet "ratios".