How can I buy a house while n the middle of divorce?

[terryeaton]

What is the name of your state (only U.S. law)? TX

Hi, I'm in a situation here and wanted to know if anyone could help.

I'm in the middle of a divorce and trying to buy a house. My wife and I agreed she would sell the house and keep the proceeds. I'm on the title, but I AM NOT ON THE LOAN FOR THE HOUSE. Lender said since I'm on the deed, they can't finance me for a new house because it throws my debt to income ratio off. Spoke with an attorny, she said to file a special warranty deed and a deed o ftrust and it would take me off of it. However, the lender said it won't, and they're ultimately in control of financing the house I'm trying to buy (FHA)>

is there ANYTHING we can do, short of waiting for the divorce to finalize which will be a few weeks, because I'm supposed to close next Thursday! Ugh

Thankx

 

[Zigner]

What is the name of your state (only U.S. law)? TX

Hi, I'm in a situation here and wanted to know if anyone could help.

I'm in the middle of a divorce and trying to buy a house. My wife and I agreed she would sell the house and keep the proceeds. I'm on the title, but I AM NOT ON THE LOAN FOR THE HOUSE. Lender said since I'm on the deed, they can't finance me for a new house because it throws my debt to income ratio off. Spoke with an attorny, she said to file a special warranty deed and a deed o ftrust and it would take me off of it. However, the lender said it won't, and they're ultimately in control of financing the house I'm trying to buy (FHA)>

is there ANYTHING we can do, short of waiting for the divorce to finalize which will be a few weeks, because I'm supposed to close next Thursday! Ugh

Thankx

Ask the lender what you can do to fix this situation.

 

[latigo]

Something is haywire! Because if you are a recorded owner of the house and "not on the loan for the house", then you had to have taken title after the lender's lien was recorded. In which case you wouldn't necessarily be personally responsible for the loan, BUT your ownership would be subject to it. Otherwise the lender or the holder of the lien would not have adequate security.

(Real estate lenders that intend to remain in the business DO NOT make such loans without all the current owners of record signatory to the note secured by the lien. It would be like a credit union financing a customer's auto purchase with their security covering all but the drive train.)

And if it is true that you are not personally obligated on the real estate loan/lien, then it should not effect your debt to income ratio! Being "on the deed" does not alone make you liable for the loan. So how could it effect debt to income ratio?

Also, why would this attorney you mention come up with her screwy plan to "take you off of it" if you are not on it?

I agree with Z. You need to have a "sort it out" sit down with the lender. During which my guess is that you will learn that you are "on it".

 

[LdiJ]

Something is haywire! Because if you are a recorded owner of the house and "not on the loan for the house", then you had to have taken title after the lender's lien was recorded. In which case you wouldn't necessarily be personally responsible for the loan, BUT your ownership would be subject to it. Otherwise the lender or the holder of the lien would not have adequate security.

(Real estate lenders that intend to remain in the business DO NOT make such loans without all the current owners of record signatory to the note secured by the lien. It would be like a credit union financing a customer's auto purchase with their security covering all but the drive train.)

And if it is true that you are not personally obligated on the real estate loan/lien, then it should not effect your debt to income ratio! Being "on the deed" does not alone make you liable for the loan. So how could it effect debt to income ratio?

Also, why would this attorney you mention come up with her screwy plan to "take you off of it" if you are not on it?

I agree with Z. You need to have a "sort it out" sit down with the lender. During which my guess is that you will learn that you are "on it".

PSST....

Texas a community property state. Therefore he is equally responsible for the mortgage until he is actually divorced.

 

[latigo]

PSST....

Texas a community property state. Therefore he is equally responsible for the mortgage until he is actually divorced.

So? Where do you find any indication in the OP's post that the real estate loan is a community debt. All that is given is that it was agreed that "she would sell the house and keep the proceeds". Which added to his belief that he is not on the mortgage note could mean that it is his wife's sole and separate property.

Admittedly his statement that he is "on the deed" seems in contrast to it being separately owned. Yet he mentions no objection to her selling it and keeping the proceeds. Which if it were community property, he would own a vested community interest which the divorce court would be required to recognize.

But in your assuming that it is community property and subject to a community property debt for which he is jointly liable, it is patently absurd of you to suggest that that responsibility would end with a divorce! As is your above use of the conjunctive in "responsible UNTIL he is actually divorced".


"[SUP]Beware of false knowledge. It is more dangerous than ignorance." (GBS)[/SUP]

 

[LdiJ]

So? Where do you find any indication in the OP's post that the real estate loan is a community debt. All that is given is that it was agreed that "she would sell the house and keep the proceeds". Which added to his belief that he is not on the mortgage note could mean that it is his wife's sole and separate property.

Admittedly his statement that he is "on the deed" seems in contrast to it being separately owned. Yet he mentions no objection to her selling it and keeping the proceeds. Which if it were community property, he would own a vested community interest which the divorce court would be required to recognize.

But in your assuming that it is community property and subject to a community property debt for which he is jointly liable, it is patently absurd of you to suggest that that responsibility would end with a divorce! As is your above use of the conjunctive in "responsible UNTIL he is actually divorced".


"[SUP]Beware of false knowledge. It is more dangerous than ignorance." (GBS)[/SUP]

Once again, there you go.

It is clear that his potential new mortgage company is considering it to be a community debt. Whether it actually is or actually isn't is immaterial to the matter at hand...because the mortgage company gets to make their own rules. Hence my "psst" to you, because you obviously don't "get" issues in community property states.

My mistake was giving you the "psst" because I assumed that you did not realize that TX was a community property state and that you would realize that your answer wasn't good in that instance....MY BAD.

 

[ecmst12]

You know, if you buy a house while you're still married, it will be marital property...

 

[stealth2]

At the end of the day, the lender is not obligated to write you a loan. They really can just say no.