Can an Ex-Wife Assume a Mortgage After a Divorce if She Is Not on the Mortgage?
If you want your ex-spouse to assume your mortgage loan, you have to first check with your lender to make sure that your mortgage loan is assumable. If it is, anyone who qualifies can assume your loan, including an ex-spouse. Once the assumption is complete, your lender will release you from liability for the mortgage.
Other People Are Reading
-
Mortgage Assumption Requirements
-
Your ex-spouse does not have to be a co-borrower on your loan to assume the mortgage. If your lender allows the assumption of the mortgage, your ex-spouse will have to provide the lender with financial proof that she can afford the mortgage payment on her income alone. Examples of financial proof include copies of federal tax returns including W-2 or 1099-MISC forms and checking and savings account statements.
Credit
-
When an ex-spouse assumes the mortgage on your marital home, not only will he have to prove that he can afford the payments, but the lender will also require him to have a decent credit score. Each lender has his own specific credit score number for approving mortgage loan assumptions. However, many lenders consider a Fair Isaac Company (FICO) score of 620 or above to be par and anything below 620 as sub-prime. If your ex-spouse falls into the sub-prime category, he may not be able to assume your mortgage.
-
Liability
-
The lender has to approve your ex-spouse's assumption before you will receive a release from liability for the mortgage on your marital home. Until the lender approves the assumption, you are still responsible for making payments on the loan, even if you have already signed a quit claim deed or other type of release such as an interspousal transfer grant. A quit claim and interspousal transfer removes your name from the deed but does not release you from your liability for the loan.
Considerations
-
One possible point of contention when one ex-spouse assumes the mortgage on the marital home is the equity. In a typical divorce, when one spouse refinances the house in her name only, she has to pay her ex-spouse his portion of the equity in the home. If the spouses decide to sell the property, they generally split the equity. You need to discuss how you plan to handle the equity issue with your ex-spouse before beginning the assumption process.
-
