Mortgage Assumption

[snag]

My divorcing spouse and I co-own a home in Massachusetts. As part of the divorce, I paid money to the spouse and the deed was changed into my name only. I also agreed to change the mortgage (originally obtained at a local bank) to my name only, so my ex would no longer be legally liable for the remaining loan. I already had paperwork from the bank to do this. They called it an assumption. I have excellent credit, the remaining mortgage is fairly small, and has less than 8 yrs to go out of the original 15.

The problem: The bank that had agreed to do this was just bought out by another. The new bank (in California)says the loan is not assumable, even by the co-borrower. Is that possible, when the other bank was willing to allow me to assume it? (Actually, the previous 2 banks were willing, but the divorce dragged out, and only now do I have the divorce papers that are needed.)

 

[HomeGuru]

Contact a mortgage broker and apply for a new loan.

 

[snag]

Of course I can get a new loan. But I wanted to avoid the closing costs, which will be more than an assumption would cost. I agreed to the divorce settlement amount based on the costs of an assumption, not a refinance. My legal question has not yet been answered.

 

[HomeGuru]

Contact a mortgage broker and apply for a new loan because the new lender will not approve the assumption. Your divorce settlement took too long and the lender changed. It is not their fault. This issue is not about what you want but rather what the lender requires. Realize that the lender is the one that controls the loan and not you.
I understand your wanting to save closing costs but you are stuck pal.

Your question was answered by my first response. You just did not know it.