Quit Claim Deed/Credit Issue

[arosado1970]

What is the name of your state? North Carolina

I will try to make this brief. In 1993 My husband and his ex divorced. He decided to leave her the house because to the 2 children they have together. He signed a quit claim deed but before he did so, his ex told him that she would put the deed of trust/mortgage (basically assume it) in her name. Then he decided to sign the quit claim. The "loan" was a VA (Dept of Veteran Affairs) assumeable loan. It wasn't until after the divorce was final that she realized that she could not assume the loan because she is not a veteran. She has not done anything about it since and has been faithful in pyaing the loan off.

Recently, my husband got a copy of his credit report and the "loan" is still on there. We want to purchase a home and cannot because this has increased his debt to income ratio and lowered his FICO. She will not refianance because she stated that it would cost her between $1500 and $2000 to do so.

My question is this... Since the Dept of VA insured this "deed of trust" and according to the quit claim she was to indemnify them (VA) of any guaranty or insurance of the loan indebtedness, can the VA make her refinance since she is not a veternan and has no rights to their "loan/deed of trust"?

I realize from reading other posts that we, ourselves do not have any recourse in making her refinance, but if the government found out that she was to to indemnify them, I just wonder if the outcome would be a postive one for us.

I believe that this is a deed of trust and not a mortgage because the VA insured that the laon would be repaid. AS far as my knowledge of the VA goes, I believe that when it is repaid the actual deed will go to them first and then sent to the appropriate party. How will they (VA) even know that a quit cliam was even done and how will they know that she didn't indemnify them from it?

Amy help would be appreciated. Thank you in advance.

 

[LdiJ]

What is the name of your state? North Carolina

I will try to make this brief. In 1993 My husband and his ex divorced. He decided to leave her the house because to the 2 children they have together. He signed a quit claim deed but before he did so, his ex told him that she would put the deed of trust/mortgage (basically assume it) in her name. Then he decided to sign the quit claim. The "loan" was a VA (Dept of Veteran Affairs) assumeable loan. It wasn't until after the divorce was final that she realized that she could not assume the loan because she is not a veteran. She has not done anything about it since and has been faithful in pyaing the loan off.

Recently, my husband got a copy of his credit report and the "loan" is still on there. We want to purchase a home and cannot because this has increased his debt to income ratio and lowered his FICO. She will not refianance because she stated that it would cost her between $1500 and $2000 to do so.

My question is this... Since the Dept of VA insured this "deed of trust" and according to the quit claim she was to indemnify them (VA) of any guaranty or insurance of the loan indebtedness, can the VA make her refinance since she is not a veternan and has no rights to their "loan/deed of trust"?

I realize from reading other posts that we, ourselves do not have any recourse in making her refinance, but if the government found out that she was to to indemnify them, I just wonder if the outcome would be a postive one for us.

I believe that this is a deed of trust and not a mortgage because the VA insured that the laon would be repaid. AS far as my knowledge of the VA goes, I believe that when it is repaid the actual deed will go to them first and then sent to the appropriate party. How will they (VA) even know that a quit cliam was even done and how will they know that she didn't indemnify them from it?

Amy help would be appreciated. Thank you in advance.

It was not wise to give her the quit claim deed before having proof that she had placed the loan in her own name.

I don't know if he can be successful, but he should at least try taking it to court to try to get a judge to order her to refinance.

 

[nextwife]

Unless she fully assumed the mortgage with a "release of liability", then he is still liable for the mortgage in the event of a default. So, while the loan is in place, it will be on his credit report and will affect his credit score.

You and he should still be able to buy a home. What about YOUR credit score? Can you be the buyer, and quit claim him onto the property later after you purchase?? If you do not own another home, have you tried qualifying based on your income/credit score? I work with female homebuyers all the time, many are married, buying seperately, using only their income and credit.

Or, perhaps if hubby agrees to pay the refi costs, ex would agree to refi him off the loan?

 

[arosado1970]

Update

This just goes to show that you cannot trust mortgage companys to know about ALL types of loans.....

I found out from the Dept of VA that ANYONE can assume a VA loan. That's right... the 1st mortgage company was incorrect. After I got that tidbit of info, I called the mortgage company and told them our situation. I was then transferred to a person who gave me the info I needed about assuming the loan for his ex. All they need is a copy of the quit claim, divorce decree, and a release of liability from the VA. Right now, we are working with the VA about the release and it looks promising. Just wish us luck about getting it into his ex's name and off of his.

Thanks for everything
arosado1970

 

[arosado1970]

Another Question

What is the name of your state?NC

Hubby divorced in 1993. In one section it states "The Wife agrees to assume adn Husband agrees to accept the debt of $2,737.00 as owed to the Husband. Upon the Wife's completion fo nursing school and subsequent employment, the Wife shal pay to the Husband this amount by reasonable monthly installments. The amount of the these installments shall be determined by the Wife." Now underneath that was a hand-written statement that has been initialed by both him and his ex. It states "payments of $100.00 monthly starting Novemeber 1, 1995 through the court system."

I asked him about this he told me about a situation during their separation where she lied to obtain more in welfare. He was in college and was already paying his obligated CS directly to her. He was keeping a log of when and how much was being paid and had her sign everytime. His lawyer kept the log. SHe filed for welfare and neglected to mention that she was receiving CS. He got pulled in to the office to pay back this money. Confused, he asked if he could call his ex. When he did call her, her first response was "Oh my God, I've been caught." Not the response you would her from an innocent person. She begged him to pay them and she would pay him back. He agreed and had to take out another student loan to to just that. That is why she owes him this money.

Question is...Since it stated that "Upon Wife's completion of nursing school and subsequent employment, the Wife shall pay to the Husband this amount by reasonable monthly installments.", since she never completed nursing school, we have no recourse in getting that money from her, do we?

Any advice on how to get it from her? Thanks in advance!!

An additional note, the lawyer lost the log back then and ever since he has been paying through the court system. That is why he had to pay them the money for the welfare. He had no proof that he had been paying it all.

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