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I just learned if your name is still on a loan, a divore decree and the quit claim mean nothing. A lender will still show you as obligated on that loan and if there is a default they will come after you. So will be viewed as debt by a LO. If that property went t hrough a BK.. get a letter from bank that they know they have been discharged in BK and will not be looking to you for payments if there ever is default. I just went through this myself.
@adrenalinern wrote:
THANKS TO EVERYONE ON THIS AWESOME SITE. I AM PREPARING MYSELF FOR THE 2 YEAR POST BANKRUPTCY DISCHARGE DATE TO APPLY FOR FHA MORTGAGE. QUESTION....I DIVORCED IN 2008 AND I QUIT CLAIM DEEDED THE PROPERTY TO MY EX. FILED BANKRUPTCY IN 2012 AND INCLUDED THAT HOME. THE EX HAS PAID AS AGREED ON THE LOAN. THE BROKER THAT I HAVE BEEN TALKING TO SAID HE SEES NO PROBLEM UNLESS THE GOVERNMENT HAS PUT A CLAIM ON THAT PROPERTY. WHAT DOES THAT MEAN? HOW CAN I FIND IF THERE IS SUCH A CLAIM. ANY INFO IS APPRECIATED.
Your name is still on that mortgage unless the property was refinance by your spouse to get your name off it. The quit claim deed took your name off the deed and the bankruptcy discharge relieved you of the responsibility to repay the loan. Don't know if your broker knows something that I don't know from your post, but how do you plan to deal with the fact that your name is still on the mortgage on which your spouse is making payments? The FHA underwriter will want to know.
Divorce stated he was to refinance in 90 days and he never did. I have a statement from the bank now that I am not financially repsonsible for that loan that s hould be fine with UW. Nice thing is they are reporting it as paid well.. and it is helpiing my credit.
I read somewhere that the deed really means nothing as far as the mortgage responsibility goes. I am no expert but you should more than likely trust your lender as I am sure they know the specifics of whatever program they are targeting for you.
For the OP she has a couple of things in her favor 1) PSA (property settlement agreement) for her divorce specifies that the husband retains the house and she quit claim the asset to his name AND specifies that he refinances into his name and 2) she has successfully filed for BK and received a discharge so she is not personally responsible for the repayment of the mortgage.
You are right about the deed and the mortgage being two entirely separate things. Normally a quit claim deed wouldn't have any effect at all. But in this case with the discharged BK and the PSA from her divorce she should be in good shape for a new mortgage as long as she meets the other qualifying criteria.
Just a note for you, the lender will want to see your divorce decree, your PSA, the BK petition and the BK discharge when you do apply for a new loan.
It is possible the lender may request a copy of the cancelled checks showing your ex is making the payments from his account and that you don't share the bank account or funds with the ex husband. Just something to keep in mind so you can keep all your paperwork together in case the lender asks for those items.
@adrenalinern wrote:
I have the all the paperwork ready except any info from the ex. He isnt a very cooperative soul and I am sure he will not be willing to assist me in any way. Guess I will just have to see what else they can take as proof.
I think you are going to be fine without that proof of his payment because you have a bk bdischarge and all the proof of that