Separated spouses / house situation?

Deal Score0

Couple marry, husband buys house with great credit and VA loan after marriage. Wife’s name is not on the mortgage because her credit is bad. Couple separates; wife and children still in house, husband moves out but is still paying mortgage. House is not NEARLY paid for. Wife’s credit is better than before, but still not good, husband’s credit still pretty good. Husband needs to buy another house, but all money is tied up in the first house. How can wife with not so good credit buy house from husband? Is that even necessary? Can husband just deed house to wife and wife takes over payments? Help, please.

1 Comment
  1. Reply
    ♥Lucky♥ 2nd Bun in the Oven
    February 9, 2011 at 6:08 am

    Wife will be able to qualify for a mortgage, but may pay very high interest rates or be forced to purchase foreclosure insurance.

    Depending on your State, the house may be considered marital property – meaning that, even though it’s in the husband’s name, the house may be 50% owned by the wife. In which case, the wife owns 50% of the equity already invested into the house.

    My advice is to hire a real estate attorney (or financial planner) to get the facts and determine your best plan of action.

    Leave a reply

    Register New Account
    Reset Password