Refinancing the house


#1

Dear philzone:

Greetings. The legal impediment is that you need a quitclaim deed, separation agreement, or free trader agreement now for your wife’s interest in the property to be cut off. Despite the fact that you qualify for the loan on your own income, they are not going to relinquish her as a party on the loan until they are sure she will not have any marital interest in the home. Therefore, the impediment is that lenders cannot trust people to do what they say they are going to do - that means that you need the correct paperwork now to remove your spouse’s name from the deed and the loan.

Also, I would hate it for you to later have a change in the situation and find yourself having to refinance again or paying for a home that she alone is living in. Best of luck.

Janet L. Fritts
Attorney with Rosen Divorce
4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
RosenDivorce.com
919-787-6668

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service but a full discussion with an attorney should be undertaken before taking any action.


#2

Greetings once again,

And thank your for your helpful comments.

However, I have a follow-up question: If I can afford and qualify for the mortgage on my own salary (which I can), what legal impediment, if any, would stop me from refinancing my house now (under the assumption that I would provide a new mortgage lender a Quitclaim Deed in the future)? Why would it matter if a lender would release my spouse as a “responsible party” when I clearly qualify(money-wise on my own) for a new loan?

Thanks again,
Tim

Greetings,

I will be retaining the marital home, and refinancing. The mortgage is currently in both of our names.

Question: Is there any reason why I can’t refinance now, even though the details have not been finalized? Or do I have to have a signed Quitclaim Deed in hand prior to refinancing?

Thank you as always for your thoughts. This is a very helpful forum.

Regards,
Tim

JanetFritts

USA
1400 Posts
Posted - 11/21/2004 : 18:22:33

Dear philzone:

Thanks for the positive comments on our forum! No, generally a bank or financing company will not allow you to refinance until you have a signed separation agreement. Afterall, why would they want to release your wife as a possible responsible party before that? Thank you.