What if the exHusband own the home but no longer live there but ex-wife & kids stay there. The ex husband willing to sign mortgage over to the ex wife so he won’t have to pay for it anymore. However want he to want to move on with his new family & buy another home. How can I help them any pointer.
My Strategy was to figure out
A. How can the exHusband sign the lease over ex-wife no fee or money but she is willing to pay if she has too. (Wholesaler or seller financing)
B. How can I help the ex-husband get a new home. All In one.
The husband can use a Quitclaim Deed to transfer ownership to the wife.
He can not sign over the mortgage. He will still be on the mortgage but can sign over his interest in the title. It might effect his ability to borrow money because of DTI.
As mentioned, he can sign over the title, but not the mtg. Unless the wife can refinance the mtg, the husband will still have the loan, affecting his ability to buy a new house.
@Kiveon Crawford According to settlement report lender will decide both situation. Ex-wife can take loan responsibility by refinancing as rate and term. For ex-husband see guidelines from Fannie Mae.
When a borrower’s interest in a property is bought out by another co-owner of the property, as often happens in a divorce settlement, but the lender does not release the borrower from liability under the mortgage, the borrower has a contingent liability.
If the lender obtains documentation to confirm the transfer of title to the property, this liability does not have to be considered as part of the borrower’s recurring monthly debt obligations.