Can I Be Forced to Refinance Again After Divorce in FL

Previous | Next
 rated by 0 users
Latest post Tue, Mar 22 2016 9:25 AM by adjuster jack. 9 replies.
  • Mon, Mar 21 2016 10:25 AM

    • Justin B
      Consumer
    • Not Ranked
    • Joined on Mon, Mar 21 2016
    • FL
    • Posts 3

    Question [=?] Can I Be Forced to Refinance Again After Divorce in FL

    I am in the middle of refinancing my mortgage. I asked the agent at the very beginning if it matters whether I refinance before or after the divorce, and he said it did not. Just after having me sign a bunch of forms saying that I'm liable for fees if I back out now, and 2 days after my appraisal for the refinance, the mortgage company mentioned that if I am refinancing before a divorce, that I may be forced to refinance it again after the devorce, in order to fully get the ex-spouse's name off the home fully. Is this true? I'm having trouble finding any reference to this on the internet. If the soon-to-be ex-spouse is at the closing and signs off on me taking sole ownership of the mortgage, and also signs a quit-claim deed, is that not all that is required by Florida law if we are not yet divorced? Thanks in advance!

  • Mon, Mar 21 2016 11:51 AM In reply to

    Re: Can I Be Forced to Refinance Again After Divorce in FL

    Justin B:
    If the soon-to-be ex-spouse is at the closing and signs off on me taking sole ownership of the mortgage, and also signs a quit-claim deed, is that not all that is required by Florida law if we are not yet divorced?

    The only three possible reasons I can think of that you might be required to refinance after the divorce are (1) the mortgage you are about to receive is based on both incomes and is in both names, or (2) your spouse balks at signing a quitclaim deed, or (3) the divorce court awards part of the house to your spouse even though he or she signed the quitclaim deed.  Did you doublecheck to make sure the new mortgage will be in your name only?

    And, actually, the quitclaim deed SHOULDN'T affect things unless the mortgage has some kind of wording requiring the deed to be in your name alone.

  • Mon, Mar 21 2016 12:14 PM In reply to

    • Justin B
      Consumer
    • Not Ranked
    • Joined on Mon, Mar 21 2016
    • FL
    • Posts 3

    Question [=?] Re: Can I Be Forced to Refinance Again After Divorce in FL

    1) As far as I know, it was only based on my income, as that was the only thing I provided them, and they only credit-checked me. Also, my name is the only name that has ever been on anything regarding the refinance, and I am the only one signing the forms.

    2) I guess things could change, but we're still friendly, and that doesn't seem like something she would do. She's actually been researching this on her own as well, and we've been sharing our findings.

    3) She said that she wants to do a simplified divorce, where we determine what goes to who on our own. If we weren't, the court could do something like that? After I refinance it on my own, and she signs a quitclaim deed, the court could still then decide that its partially hers?

  • Mon, Mar 21 2016 2:31 PM In reply to

    Re: Can I Be Forced to Refinance Again After Divorce in FL

    Justin B:
    the mortgage company mentioned that if I am refinancing before a divorce, that I may be forced to refinance it again after the devorce, in order to fully get the ex-spouse's name off the home fully. Is this true?

    No.  Indeed, it doesn't make sense.  The way for your wife's name to come off title is for her to deed her interest to you (typically done by signing a quitclaim deed).  If you and she refinance before the divorce is finalized and she then deeds her interest to you, there's no reason you would then have to refinance again unless the terms of your mortgage loan agreement require that.  If you're doing the refi on your own and the idea is that she will deed her interest over to you as part of the refi transaction, then that should cover everything.

    I hope it goes without saying that your divorce lawyer ought to review all the relevant documents and be involved in this transaction.

  • Mon, Mar 21 2016 2:34 PM In reply to

    Re: Can I Be Forced to Refinance Again After Divorce in FL

    Justin B:
    She said that she wants to do a simplified divorce, where we determine what goes to who on our own. If we weren't, the court could do something like that? After I refinance it on my own, and she signs a quitclaim deed, the court could still then decide that its partially hers?

    If you and see reach a property division agreement and she quitclaims her interest to you, there is no conceivable reason why the court would award her anything relating to the house.

  • Mon, Mar 21 2016 3:17 PM In reply to

    Re: Can I Be Forced to Refinance Again After Divorce in FL

    Justin B:
    and 2 days after my appraisal for the refinance, the mortgage company mentioned that if I am refinancing before a divorce, that I may be forced to refinance it again after the devorce, in order to fully get the ex-spouse's name off the home fully.

    When you say "the mortgage company," do you mean the mortgage broker who is working with you?  I know nothing about this person, but in my own personal experience, not all of these front-line mortgage brokers are exactly rocket scientists.

    It sounds like you should be fine, but even if this hadn't happened, you should insist on receiving a copy of all the mortgage papers as soon as possible - at least a couple of days before you will have to sign them - so you can read everything very carefully to make sure it's acceptable to you (including checking their math).

    As far as a reason why the divorce court might change your mutually-agreed asset division plan, this pamphlet courtesy of the Florida Bar says, "The court should approve your agreement if the court finds it to be reasonable."  So I guess if the judge thinks your agreement is unreasonable he or she could decide to do something different.

  • Mon, Mar 21 2016 6:05 PM In reply to

    Re: Can I Be Forced to Refinance Again After Divorce in FL

    karen2222:

    When you say "the mortgage company," do you mean the mortgage broker who is working with you?  I know nothing about this person, but in my own personal experience, not all of these front-line mortgage brokers are exactly rocket scientists.

    And they work on commission so they will tell you anything to get you to sign.

     

     

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • Mon, Mar 21 2016 7:00 PM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on Thu, Mar 30 2000
    • PA
    • Posts 51,404

    Re: Can I Be Forced to Refinance Again After Divorce in FL

    If she balks at signing a quit claim and or refuses to vacate "your" home you might be in a rats nest ...make darn sure the refi and the quit claim are in lock Step?   Is she currently one the deed ?  If she is , I'm suprised a lender would refi in your name alone .



  • Tue, Mar 22 2016 8:45 AM In reply to

    • Justin B
      Consumer
    • Not Ranked
    • Joined on Mon, Mar 21 2016
    • FL
    • Posts 3

    Re: Can I Be Forced to Refinance Again After Divorce in FL

    Drew:

    If she balks at signing a quit claim and or refuses to vacate "your" home you might be in a rats nest ...make darn sure the refi and the quit claim are in lock Step?   Is she currently one the deed ?  If she is , I'm suprised a lender would refi in your name alone .

    I think I'm ok in that regard. She spent the entirety of last week moving most of her stuff to the living room in anticipation of moving, and all she's waiting on is her portion of the equity before she can affort to do a first/last/security on an apartment. Getting her to move out so quickly was actually her idea, not mine. I was ok having her as a roommate, at least until she's more financially stable, but I think she felt weird about it, which is why this is all happening now. Wouldn't they have the quit claim thing happen at the closing on the refinance? Or do I need to set it up so that this is what happens?

  • Tue, Mar 22 2016 9:25 AM In reply to

    Re: Can I Be Forced to Refinance Again After Divorce in FL

    Justin B:
    Wouldn't they have the quit claim thing happen at the closing on the refinance? Or do I need to set it up so that this is what happens?

    You need to set it up.

    The escrow/title company will not do anything they aren't instructed (in writing) to do.

    Don't sign anything at the loan closing unless the deed form and your wife are both there.

    You let something slip through the cracks and you could end up having big and expensive trouble.

     

     

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
Page 1 of 1 (10 items) | RSS

My Community

Community Membership New Users: Search Community