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mortgage maturity and renewal

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  • mortgage maturity and renewal

    The maturity date for the matrimonial home mortgage is due next year. We are separated and STBX wants to keep the home. I am ok with that, as long as I am bought out. I checked with the bank where the mortgage currently is, in both our names, and I asked if I can be removed from the mortgage if I don’t want to sign the renewal. I was surprised to hear that, yes, from the bank's point of view, it is possible, STBX can assume the mortgage and continue with it, if gets approval from the bank and letter from the lawyer. Moreover, STBX can be put on the title if the mortgage is assumed. This means that I can simply loose my equity, just like that? Anyone faced with a similar issue? I was under the impression that the mortgage and the title cannot be changed w/o both parties being involved. I will get legal advice in regards to this matter, of course, but I would like to hear from others in similar situations. Thanks.

  • #2
    You have to sign away your title, it can't be done (legally) without your signature.

    I bought out my ex from the matrimonial home - was not a big deal, it is done such that you are simply removed (with your signature) from title, and done so that there is not land transfer tax. As for the mortgage, we closed it out and I got a new (BIG) one. It was done at the same time. We hired a lawyer to do it - a separate lawyer from our divorce lawyers - more simple and cheaper.

    Also with the same 3rd party lawyer, we did equilization. We added things up ourselves (made a spreadsheet etc), made instructions to settle all common accounts, with money coming from my new mortgage. All this was done by a letter of instruction of which accounts to close, which house titles to transfer, where the money comes from etc to the 3rd party lawyer. We both signed that letter to the 3rd party lawyer, it stated this settled all equalization. Then we each signed whatever document that lawyer asked us to to get it done - which included title transfer documents. It all cost about $2000, but that included ALL fees as well as the lawyer bill. Sweet!
    Last edited by billm; 07-24-2009, 07:10 PM.


    • #3
      I also bought out my ex from the matrimonial home, similar but not exactly same scenerio. Equalization amounts were determined by family law lawyers and title transfer etc done by a third party lawyer whom I hired. Roughly the same costs of around 2K.

      I am quite certain also that your name may not be removed from title with out your consent. I don't think you need to worry about that, she should start to inquire about having mortgage aproval on her own though as this was an issue that took me some time for me.

      Did you have an evaluation done at date of seperation to determine what would be fair payout/buyout in terms of the home?


      • #4
        I have another question pertinent to this. We had an appraisal done by a real estate agent, but the bank required another appraisal by another type of appraiser (I'm thinking property tax appraiser) for refinancing purposes. The 2nd appraiser's value came in at $25,000 less than the real estate agent's appraisal. Now STBX is going with the significantly lower value for equalization purposes.

        What are my options? Can I insist on market value or do I have to go with what the bank says? Can I force him to sell to get the equity I believe I'm entitled to?

        Thanks for any advice.


        • #5
          There are two ways to get an apraisal that I am aware of. I was told during my seperation to get an appraisal from a certified appraiser and definately not a real estate agent. Didn't even know the difference at the time myself. From my understanding, the opinion of an appraiser is much more widely accepted than that of a real estate agent. As a side note there are some real estate agents that are also certified as appraisers from but the certifed appraisers value is almost always accepted above that of an agent.


          • #6
            I guess to answer your question you may hire an appraiser yourself and see what the value comes in at. Costs roughly $300.00.


            • #7
              The lower appraisal was done for $300. Thank you for your help.


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