Should I refinance so I can buy the condo I fell in love with?

Asked by janenaples, Warwick, NY Thu Dec 27, 2012

My soon to be ex-husband and myself own a residential home with no mortgage. This house will be transferred to me upon final divorce settlement - in a few weeks. I can't afford to stay in this house and found a condo that I want to buy. House is not on the market until it is transferred to me. A mortgage company recommended that I refinance and take cash out to purchase condo in cash. They said I can do this in my name only, don't need ex-husband signature. I can pay back the loan when my house sells - I don't owe anything on current home.
suggestions?

Help the community by answering this question:

+ web reference
Web reference:

Answers

3
John Juarez, Agent, Fremont, CA
Thu Dec 27, 2012
You say that the mortgage company’s representative is advising you that you do not need your ex-husband’s signature to take out a loan on property that is still owned by you and your “SOON-TO-BE” ex-husband.

Advice from California agents about what you can or cannot do in regard to putting a mortgage on a house that may or may not be in your name only may be poor advice in New York. You should seek the advice of a local legal advisor…perhaps your divorce attorney…as to what you can do with the house is it in not in your name only and your divorce is not final at this time.
0 votes
Pacita Dimac…, Agent, Oakland, CA
Thu Dec 27, 2012
Sounds like a plan. Once the house is in your name, it's yours. You shouldn't involve your ex-husband on any future purchases.

Get that transfer pronto before you start looking to buy another property. Your mortgage adviser must have already figured out how much equity you can get if you refinance, and also gave you guidance that you can sell the house to pay off the loan. Good for you! Once you sell and have your money in your pocket....then go ahead and buy your condo.

But first things first. Get that title in your name. Then the rest falls into place.
0 votes
Sully Jong, Agent, San Leandro, CA
Thu Dec 27, 2012
Currently, both you and your husband are still owning the home under the Title, so if you refi both names will be on the new loan, do you think your husband is willing to do it with his name on it? If both names are under Title and loan, of course, he has to sign it,too.. I don't know how you hold title at this point, but consult your CPA or attorney before taking this route.

Normally, during the refi process, you cannot put it on market for sale, and refi in this market may take a long time, so it depends how soon your divorce is final and how soon the refi is done..And how soon you find the new place & get it closed...It is all timing issues..

I m sure you are under lots of stress just going thru the Divorce process, if you put more pressure at this point to refi and finding a new place, you may make a mistake during the process.

If you can qualify to refi the current property, why can you just buy a new property and get a new loan instead? Your current home has no mortgage anyway, so it will not impact you getting a new purchase loan. Hope this help..
0 votes
yes good question! what is the difference between getting a mortgage for new property and getting "cash out refinance" ??
Flag Thu Dec 27, 2012
Search Advice
Search
Ask our community a question

Email me when…

Learn more