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richspjut, Home Owner in Omaha, NE

Do you know of mortgage or loan companies that will give me a mortgage with my ex on title of my California home that was awarded to me from divorce?

Asked by richspjut, Omaha, NE Sun Apr 14, 2013

Via stipulated oral agreement in a California Court, Sep 2011, I was awarded the family residence, requiring me to get refinancing and her to cooperate in the refinancing. While both of us are on title, she holds the mortgage in her name alone. Two attorneys failed thus far in getting her to provide the pay off amount on the mortgage and to take her name off title; indeed, it was too difficult for my latest attorney who suddenly decided to file a substitution of attorney form naming me as attorney. I feel the best way to end this matter is to find a mortgage or investor to loan me $150,000 to pay off the mortgage, This would discourage her from holding on to title since she would no longer have the mortgage or any incentive to take the house from me. I am currently approved for a reverse mortgage on a home that was appraised $250,000, now valued at $300,000. I need her name off title before I can obtain the reverse mortgage.

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1. Offer to buy the house from your ex for the price of the remaining balance of current mortgage. Maybe offer her more so she has an incentive to part ways. That way she is removed from title and you hold the responsibility of the mortgage.
2. That reverse mortgage company is taking advantage of you. If the house is currently worth $300k and their appraisers appraised it for $250k... they are immediately stealing $50k of your equity (which is your earned interest.. your cash.. sitting in the form of a house). Plus they have all sorts of fees and when they pay you up to the agreed amount, your kicked out with no money other than the liquid you have saved.

This is just my professional opinion on how you can solve your real estate issues. You may want to find a patient attorney who can help clear your thoughts and meet your needs. Good luck!
0 votes Thank Flag Link Sun Apr 14, 2013
Sounds as if your problem is with your ex, not with the refinancing process. You say she refuses "to provide the pay off amount on the mortgage." Well, if she's refusing to do that--the first step--sounds as if she's certainly not going to cooperate in the further steps necessary. So--and I'm not a lawyer, so this isn't legal advice--sounds as if she's in violation of the divorce decree. If she's refusing to provide the payoff amount and she's the only one on the mortgage, there may not be much you can do short of getting the court to order her to provide the amount.

On the other hand, it's understandable that she isn't going to voluntarily remove her name from the title. If she did so, you'd own the property and she'd still be on the mortgage. Yes, I understand that your intent (per the stipulation) is to refinance in your name, so that both the title and the mortgage are in your name. But it's not in her interest to remove herself from the title while she's still on the mortgage.

What makes you think that if you came up with $150,000, that she'd allow the mortgage to be paid off? In fact, since you can't get the payoff amount, what makes you think that the figure is $150,000?

If she's willing to sell, I could see an investor buying it from her, then reselling to you. That's an expensive way to do it, both due to the two closings and because the investor is going to want to make a profit from the transaction. But that's certainly doable. There's money out there--called transactional funding--that allows an investor to borrow money for a purchase and then (either the same day or within a couple of days) sell it to someone else. The money itself will cost the investor several percentage points--let's say $3,000. Then the investor will want to make a profit--let's say $7,000. So that's $10,000 plus whatever fees are charged in California for each closing.

The catch there is that she's going to have to agree to sell to the investor. And I keep coming back to her failing to provide the payoff amount. Is she doing that just to cause trouble? Or does she not understand the process? If it's not understanding the process, then the investor might have a chance. If she's just trying to cause trouble, then you may have to have the court compel her to act.

And one totally unrelated issue: Reverse mortgages are seldom a good idea. They have huge up-front costs and all sorts of catches. If you've investigated the subject and really feel comfortable with it, fine. But if you're just trusting someone who's told you it's a good idea, you really need to investigate that further. Check with your accountant or tax planner for more details.

Hope that helps.
0 votes Thank Flag Link Sun Apr 14, 2013
Thanks for the replies.

I pay the mortgage each month as required by the court. And I can determine the loan balance by calling the bank and entering the last 4 digits of her SS# but that is not the exact pay off amount. Reverse mortgage paperwork was submitted through my attorney to her attorney in late Feb for her to sign the pay-oft authorization and to remove her name from title. She has not done so.

But I if can pay off the entire loan, then she has no incentive to keep her name on title since she would no longer have control of the motrgage. The court had awarded me the house, I am just looking for an alternative way to avoid a lot of legal expenses in ordering her to comply, especially since my attorney has not been successful.

Reverse mortgage was my last resort. Estimate value in November was 245,000, appraised 250,000 for which the loan was approved, but in the past few months houses have sold for much more; the current value is $300,000.
Flag Sun Apr 14, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
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