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10-14-2008, 03:13 PM
| | Junior Member | | Join Date: Oct 2008
Posts: 2
| | | Setting up Owelty deed in Texas
What is the name of your state (only U.S. law)? TX
I have a friend who plans to get divorced. Her and husband want to pull as much cash as possible from their home to pay debts, start fresh, etc. Apparently in Texas an Owelty deed is the only way to go about doing this without the refinance being considered a "Texas cash-out."
I have a title company rep that can draw the papers but it has to be set up properly to begin with by the courts. Should they hire an atty for this or is this something they can do on their own? They're not contesting anything, no kids, etc.
Thank you. |
10-14-2008, 05:07 PM
| | Senior Member | | Join Date: Feb 2007
Posts: 5,487
| | | You need the help of the divorce lawyer to do this properly. While the you can refinance over 80% to get rid of the owetly deed, you need to due it pursuant to the divorce property settlement.
Further, this is going to leave the party who ends up with the house/mortgage an incredible amount of debt, or are you planning to be an accessory to intentional mortgage fraud? |
10-14-2008, 07:17 PM
| | Junior Member | | Join Date: Oct 2008
Posts: 2
| | Quote:
Originally Posted by FlyingRon  You need the help of the divorce lawyer to do this properly. While the you can refinance over 80% to get rid of the owetly deed, you need to due it pursuant to the divorce property settlement.
Further, this is going to leave the party who ends up with the house/mortgage an incredible amount of debt, or are you planning to be an accessory to intentional mortgage fraud? | I'm curious, how is it considered mortgage fraud? The husband will keep the house and wife leaves with cash. There isn't much in terms of equity. And the husband will more than likely sell the home within the year. |
10-15-2008, 11:18 AM
| | Senior Member | | Join Date: Feb 2007
Posts: 5,487
| | | Because from the wording it sounded like the parties had no intention in paying the mortgage. If that is incorrect, then forget what I said.
If there is no equity, how will even a 100% loan result in any cash out?
However, the owelty needs to be set up as part of the divorce settlement. The husband can refinance to whatever is necessary (and the bank will loan him) to pay off the existing note and the owelty lien after the divorce. | |
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