Legal Question in Real Estate Law in California
How can I refinance with one income - soon to be divorced
My husband and I will be divorced very soon. I get the house in the settlement. We both want to refi, but he doesn't want to be held responsible for the refi debt since he is geting married soon after the divorce is final. Since I don't think I can qualify to refinance on 1 income, how can we do it together; quit deed the house to me, and take him off (not make him responsible) for the loan application/mortage? So I can afford the house and bills on my income alone? Any advise would be GREATLY appreciated. Thank you.
2 Answers from Attorneys
Re: How can I refinance with one income - soon to be divorced
You can't. If he is on the loan a foreclosure will destroy his credit. But, you can refinance if you will have sufficient equity in the home even if your income is weak. Check with various lenders.
Re: How can I refinance with one income - soon to be divorced
You can't refinance in both names, and then do a Quit Claim Deed to remove him from the loan. You can remove him from title, but not from the loan obligation. A lender lends to whomever qualified for the loan, and you cannot remove that liability without the lender's approval.
You will either need to find a way to finance the property yourself, or if he does not need the money right away, you can refinance to get him off the present first mortgage, and have him take a promissory note back for the balance, which you can pay later when you can refinance again.
Finally, I am not sure who you are financing with, but if you have a decent equity on your share, you should be able to obtain financing. Give me a call to get a name of a good loan broker.
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