Hi- I married my husband in the state of Louisiana in Nov of 2007. Before we were married he bought a house that is in his name only as is the loan. He was diagnosed with MS just before we were married and is unable to work because of his disease and is now on disability to the tune of a whopping $415/month. I kept up with the payments for as long as I could and when the HAMP program became affective I applied to take over the loan. I was approved for a temporary modification in Sept of 2009 and made every payment as required. Long story short here we are almost 3 years later and still no permanent modification and Bank of America is suddenly saying that I make to much money and don't need help. Whether that's true or not is really irrelevant since the value of the house has dropped almost 30% and I am 61 years old and realizing that even if I could keep up with the payments for a few years there is no way I would ever be able to afford them on my retirement income (yes I would like to retire sometime! before I die).On top of all of this the strain of all of this has totally damaged our marriage and we are contemplating divorce. What I want to do is walk away from this whole mess since the loan isn't mine because it was incurred before our marriage, take some of my retirement money and go buy my own damn house that I can afford now AND after I retire. So my question is this if my husband file legal separation papers can I buy house if he signs something saying he has no claim on it? Can we do that after separation papers are filed or do I have to wait until the divorce is final? Can I put the house in a living trust? How the hell do I get out of this mess?Thanks for your time
Country relating to Question: United States
State (if USA): Louisiana
Hello and welcome,I am very sorry to hear of your difficult situation.Did you agree in writing to be liable on the mortgage for the property?
I see.QUESTION: So my question is this if my husband file legal separation papers can I buy house if he signs something saying he has no claim on it?ANSWER: Yes, a lender may approve a loan to purchase another property if your husband signs a document indicating that he is waiving any marital interest in the property. Even if you were to remain married, that is possible to do.QUESTION: Can we do that after separation papers are filed or do I have to wait until the divorce is final? Can I put the house in a living trust? How the hell do I get out of this mess?ANSWER: Since you are not liable on the property he owns, you can basically walk away from it without repercussions and, if you otherwise qualify for a loan, could borrow to purchase another property. Lenders generally will prefer that one be single before purchasing the property, but many will accommodate you if your spouse is willing to sign a waiver of his interest in the property. I would raise the issue as soon as you contact the lender, to see whether they specifically are willing to take this course of action.
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Thank you and all the best to you,
Can I put the house in a living trust. I have no children but want to leave my assets to my nieces and nephews
Hello again,A living trust is typically used to dictate an individual's wishes if they become incapacitated and would not be appropriate to hold real property.A trust created by operation of law can own property and distribute it as instructed by the trust documents. That could certainly be used to protect the property from creditors and ensure it passes to the heirs you have chosen.If you wish for a trust to be created, it would be best to retain a local wills and trust attorney to draft the appropriate documents.
Does that apply even if you still owe money on the mortgage?
Yes, it would still apply even if there is a mortgage on the property. One would typically set up the trust and the mortgage to be in the name of the trust.Please stop hitting the "expected more" button to reply to me and instead press the "Reply to Expert" button if you wish to continue our conversation, as it provides negative feedback and damages my feedback rating every time you use that button.Thank you for your cooperation.
JD, BBA Over 20 years legal and business experience.
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