Question regarding divorce paperwork and my house..

[chriscm]

Currently my name is the only one on our mortgage but my wife is going to assume the mortgage after the divorce. I was told from my mortgage company I just need the decree stating she is receiving the house to assume it. When filling the paper work out, would be considered as me transferring the house to her (and if so, is the amount she paying me just the ,mortgage amount? Even though really she is just assuming it) or would be the "The home will remain with one spouse as the owner" and put her? Thanks in advance for any help, definitely appreciate it.

 

[latigo]

Currently my name is the only one on our mortgage but my wife is going to assume the mortgage after the divorce. I was told from my mortgage company I just need the decree stating she is receiving the house to assume it. When filling the paper work out, would be considered as me transferring the house to her (and if so, is the amount she paying me just the ,mortgage amount? Even though really she is just assuming it) or would be the "The home will remain with one spouse as the owner" and put her? Thanks in advance for any help, definitely appreciate it.

I trust that you are not proceeding under the misapprehension that her "assuming" the mortgage is going to change your relationship with the "mortgage company". That is, relieve you of that debt.

Whomsoever at the "mortgage company" instructed you as to the language to be used in the divorce decree had not business doing so.

However, in that conversation, or whatever, were you by any chance led to believe that her assumption of the debt would remove you from it?

But suppose it goes down as planned. What will you do if she doesn't pay and the mortgage note goes into default and the bank comes after you? Like a deficiency judgment?

Unless this proposed "divorce decree" which you and someone from the mortgage company have fashioned DOES NOT contain an indemnity clause and the mortgage goes into default you will have no legal recourse against her! None whatsoever.

Realistically your chances of wrapping this up into a neat and tidy package all by yourself are less than winning the New York lottery.

 

[chriscm]

I trust that you are not proceeding under the misapprehension that her "assuming" the mortgage is going to change your relationship with the "mortgage company". That is, relieve you of that debt.

Whomsoever at the "mortgage company" instructed you as to the language to be used in the divorce decree had not business doing so.

However, in that conversation, or whatever, were you by any chance led to believe that her assumption of the debt would remove you from it?

But suppose it goes down as planned. What will you do if she doesn't pay and the mortgage note goes into default and the bank comes after you? Like a deficiency judgment?

Unless this proposed "divorce decree" which you and someone from the mortgage company have fashioned DOES NOT contain an indemnity clause and the mortgage goes into default you will have no legal recourse against her! None whatsoever.

Realistically your chances of wrapping this up into a neat and tidy package all by yourself are less than winning the New York lottery.

I was. From speaking with the mortgage company and VA (because it is a VA loan) I was told that if she was keeping the house in the divorce, she would be able to assume the loan (as long as she qualifies) and be responsible for it.

 

[latigo]

I was. From speaking with the mortgage company and VA (because it is a VA loan) I was told that if she was keeping the house in the divorce, she would be able to assume the loan (as long as she qualifies) and be responsible for it.

That is well and good. But do you understand that her assumption of the mortgage loan does not automatically release you from it?

And that unless the decree or a separate document contains a clause whereby she also indemnifies you from any future liability on the mortgage note, that you'd have no legal recourse against her should she allow it to go into default?

Also, have you considered that rather than awarding her the home, subject to the mortgage, that the decree order that it be sold? And if not why not.

Why would it not be better from your perspective that the property be sold and the mortgage note (upon which you would remain obligated) retired by the buyer financing the purchase price?

You really need to be talking to your divorce lawyer. In spite of what you may think, this ain't no "do-it-yourself" project.