Divorcing and keeping the house - how does this work?

[Anonymous]

I figure this is as good a forum as any: if I am going to buy my stbx out of the house at the appraised price, what steps to we have to take after appraisal? Do we need to do a closing and all that, or just get the title changed? Assuming I qualify for the mortgage on my own, can I just take it over or do I need to refinance in my own name?

Thanks...

[Anonymous]

Probably have to refinance if his name is on the mortgage

[Anonymous]

What state?

[Anonymous]

Anonymous wrote:Probably have to refinance if his name is on the mortgage

+1

[Anonymous]

Refinance the mortgage into your name. In VA as long as the house ownership is listed in the property settlement agreement associated with the divorce then you don’t have to pay transfer taxes. Your ex has to sign a quit claim that needs to be filed with the court. There’s a specific code section that exempts the transfer tax so you’ll have to look it up, and a cover sheet that needs to be attached to the quit claim. I did my own divorce and filed the quit claim myself.

[Anonymous]

OP here - in MD. Thanks all

[Anonymous]

You have to refi the mortgage in your name (otherwise other spouse would be responsible for payments without the benefits of ownership) and transfer the deed from two names to one.

[Anonymous]

Do you work? Do you income qualify for the mortgage?

[Anonymous]

Anonymous wrote:Do you work? Do you income qualify for the mortgage?

Yes and I expect I would qualify, although i havent run the numbers. I am the higher earner.

[Anonymous]

We just put the equity in the house in my column. He got more of the other stuff, after we negotiated a price. I paid off the mortgage so as to not have to refi. Try to include the refi costs against the equity.

[Anonymous]

Realize that an appraisal for a dissolution is not the same as an appraisal for a mortgage...usually it’s higher. Regardless, we had the place appraised, I refinanced and gave him half the equity and he signed a quit claim deed during the refinance process.

[Anonymous]

He kept it. The mortgage was in his name already. If not, I would have had to refinance in his name only. He had to borrow some money to pay me. I got most of the cash; he kept the house.

[Anonymous]

Be careful!! Don’t buy him pour at the appraised price. But him out at what the net would be. Why should you take the hit for all of the taxes and realtor fees?

[Anonymous]

“Don’t buy him pour at the appraised price. But him out at what the net would be.”

Yes, this is what I negotiated.

[Anonymous]

Depends on the bank. My bank did make me sign new papers but did it for free - no appraisals or originationfee or anything. They did the same thing for him when they took me off the weekend place.