Divorce, Mortgage And Sub2
I have a house I would like to take Sub2, it was awarded to the husband in the divorce (Quit Claim Deed filed) however the mortgage is still in both of their names. He talked to the mortgage company before they sold his mortgage to a new lender and they said to send in the divorce paper work and they would take her off, however the new lender said they can't take her off unless he is able to re-qualify and basically do a whole new loan (which he probably can't do).
Is this true? Is there a way I can safely take this house Sub2?
Thanks,
C-Russ
As far as ownership is concerned, this is true. But I am not concerned with the ownership part, I would like to avoid any problems with the mortgage that may arise, as this divorce was pretty ugly.
YES you can definitely Sub2 this-the main reason/advantage/criteria of Sub2 is taking property "subject to" existing financing-the loan stays in the sellers name-title deeded over to you/entity. Read some more post on the sub to forum to learn more about this method especially replies from John Locke.
[addsig]
Hi Russ,
I think you might be overcomplicating this in your mind. The Mortgage is simply a legal agreement to pay back money - a debt that is secured by real estate. Wheras a deed actually conveys owership of that real estate.
Since the wife issued the husband a QCD after the divorce, she no longer has any right or ownership in the property. However if the husband quits paying on the mortgage, the mortgage company has the right to pursue her for the money they are owed. --> but she cannot simply reclaim the property.
At this point she is basically a cosigner on the loan; go ahead just as you would normally Sub2 a prop with a single owner.