Home Buying in Portland>Question Details

Kveens, Home Buyer in Portland, OR

Separation--proof of primary residence without Legal Separation paperwork?

Asked by Kveens, Portland, OR Fri Dec 12, 2008

The mortgage underwriter is asking that we file a legal separation ($3200) to prove that the new property will be my primary residence. We are in counseling and are not ready to be so final yet, but I will move into the new property at closing. What can I provide this underwriter to prove primary residence besides a legal separation? I am NOT on the current mortgage we hold, only have name on the title and credit score is 806.

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Wow Kveens! Stellar credit score!! This might be a question for a mortgage consultant. I don't know if there's a way to sidestep this requirement by quit-claiming your rights to your present residence (which could put your rights to the property in jeopardy while negotiating your marriage). The lending rules have changed dramatically with the current credit crunch. Can I suggest you speak with your mortgage broker or call one of my favorites: Rodd Miller at Pacific Residential Mortgage 503-757-4497. Good luck! It's never easy to navigate these trying emotional times....
Janeese Jackson, Principal Broker
Real Estate Resource
503-709-0802
0 votes Thank Flag Link Fri Dec 12, 2008
Hello,

I have a loan that has your exact scenario and I've already have drawn documents. Oregon works differently on legal separation and some out of area lenders do not know this. As long as you and your spouse are willing to write out who will be responsible for what debts and mention whether there is any support of if support is not an issue, I can fund this loan.

I am a lender and can work with any buyer throughout the State of Oregon. If you visit our website, you can read all about us as well as see we are offering a 1/2 price special. We work at your pace starting with looking at the whole picture and, through a process of elimination, together we will mold your program until it is exactly the way you like it. We are very low key and we do not charge any up front fees. Another nice feature is that I do everything in house. If you click on my bio, you can read several testimonials from current and past clients.

Sincerely,
Crystal Beard
Ambient Home Lending
Toll Free 877-777-9763
http://www.ambientlending.com
0 votes Thank Flag Link Thu Dec 18, 2008
Depending on divorce and community property law in your state, the lender is not only looking after their interest (knowing who is responsible), but also yours. If you are in a community property state, any contract entered into belongs to both. Much the same as your current loan and property are really a joint responsibility /liability and joint asset.

If you file the legal separation, your approval for the loan would be based on your individual credit score, assets and income and the new house your individual liability (along with any purchases, credit cards or anything else, now becomes separate liabilities.

The other possible alternative to explore might be to purchase it as a married couple then have the other party quit claim, as part of the divorce, but do not construe this as legal advice, consult your attorneys and mortgage broker for both state law and lender requirements.

The only other situation I know of wherein one of the married partners can purchase a property as a sole owner is if the funds used for the purchase were a separate and private monies prior to the marriage and funds have never been co-mingled within the community property. (I dont believe this is the case).

Best wishes, let cool heads and warm hearts prevail

gloria matthews
Jensen White Real Estate
Vancouver WA
0 votes Thank Flag Link Sun Dec 14, 2008
This might be a question for a real estate attorney. Also, you might want to check with a couple different broker (mortgage). Each lender has different rules. Good Luck. Jean

Jean Pritchard
John L Scott PTL
503-680-4449
0 votes Thank Flag Link Fri Dec 12, 2008
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