Refinance with title change during a divorce.?
We have lived in the same house for 8 years of which my wife acquired the financing and is the only one on the title. My credit score wasn’t so good at the time. Now we are looking to get a divorce and she wants to move and I want to stay in the house and take over the mortgage. I don’t think the mortgage is transferable and rates are lower than our current rate. It is easy with a quit claim change to get me on the title, but can we transfer the title and refinance only in my name?
I know I can qualify on my own now as my credit score is much better. I have made all payments and insurance from my checking account. One concern is if there is a waiting period from Fannie or Freddie for refinancing after being added to the title. We could also do a traditional sale but the sale during a divorce is very complicated and would cost us additional money. Coincidently there is almost no equity yet we are not upside down on the loan, so there isn’t even a question of asset transfers and splitting equity, etc. We already have two mortgage brokers and a good title attorney looking at stuff but they have conflicting opinions and concerns since this is a bit of a peculiar case.
What do we do first? Divorce, title transfer, refinance, sell and buy, or what? What a mess! Thanks!