Q: I am divorced, and living in the family home. The house is in the name of my ex-wife, i am the guarantor. if she files for bankruptcy, and the deed of the house be transferred into my name if i continue to pay the mortgage? If so, will it affect me getting a new mortgage once the current term is up? Thanks, Tom
A: Hi Tom, looks like some of your question I can answer and some of this is more suited for a lawyer to comment on.
From the mortgage perspective, as long as no payments are missed during this process (which can sometimes be tough) and you qualify to take over the mortgage solely in your name, there shouldn’t be any issues taking over the mortgage that is already in place. If you need additional funds to buy out the ex, you will need to apply at this point through underwriting to qualify for the mortgage. If you are not adding any money to the mortgage this is either done through the customer service department of your lender or directly through the branch that set up the mortgage.
That being said, it’s not clear what the timeline is looking like with the bankruptcy. Transferring the title of a property prior to a bankruptcy to avoid this asset being included in the bankrucpty could be viewed as circumvention and a lawyer should be involved to discuss what options you have to transfer title into your name.
If you would like more information regarding this matter, including how to get in touch with your lender and a recommendation for a lawyer please do not hesitate to contact me at 778-373-5441 or kgreen@mortgagealliance.com
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