How to Afford Your Mortgage After Divorce
by Paige from IN, by Dawn in MD, by Sandy in CT, and by Carin in CA
Ask Kate how to afford your mortgage after divorce: Paige is proactively pursuing a HAMP modification after her divorce. Yet she is finding her previous HARP refinance has become a roadblock. I may have another solution, the Hardest Hit Funds Program.
Dawn wants her ex-husband's name off the mortgage. I propose a loan assumption. Unemployed and recently divorced Sandy has accepted that she must sell her house to free herself from the mortgage obligation. Besides HAFA foreclosure alternatives, I describe the HAUP Mortgage Forbearance Program for unemployed and underemployed homeowners.
No HAMP Modification After HARP Refinance By Paige in Indianapolis, IN
I'm struggling financially due to the job market and new child support law.
I am a single mother due to domestic violence. I had to leave my marriage and career in 2001.
I've applied for the HAMP as a proactive measure as I am going to run out of cash. In addition to this, I am trying to get a better job and looking for a second job.
But I was denied because the origination date was 2012 when I refinanced under HARP. I had inquired about refinancing and did not know I was being directed into the HARP program.
It doesn't make sense at all to me as I am trying to be financially proactive.
Ask Kate answers: No HAMP Modification after HARP Refinance
I doubt you are being denied a HAMP modification strictly because you refinanced in 2012 using the HARP Program. According to the HAMP eligibility rules, any refinance - regardless of the program - would have caused this same issue.
Making Home Affordable's HAMP Modifications
Here's the guideline that explains...
You may be eligible for HAMP if you meet the following criteria: You obtained your mortgage on or before January 1, 2009.
So short and simple, because your current mortgage was originated after 2009, you're most likely not going to be offered a HAMP modification.Read more about HAMP mortgage modifications here
In-House Modification Programs
So what are your options? Some lenders offer in-house modification programs in addition to Making Home Affordable's HAMP.
But don't wait for it to be handed to you. Call your lender or loan servicer today. Ask if they offer an in-house loan modification program that would include your mortgage which was originated in 2012.
Hardest Hit Funds Principal Reductions
Aside from modifying your mortgage, you may be eligible for the Hardest Hit Funds Program. You will be pleased to know that a homeowner does not have to go through Making Home Affordable Program to be eligible for the funds.
Go to Hardest Hit Funds for Principal Reductions
to learn more.
Best wishes for a bright future,
HAMP Loan Modification After Divorce By Dawn in Balto, MD
I got a HAMP loan in my and my husband's name, because we were both the originators of the loan.
We are going through a divorce and he signed a quit claim deed. But out of spite, he wants me to give up the house, even though I am always current on the mortgage payments.
How do I get this in my name only without refinancing?
Ask Kate answers: HAMP Loan Modification After Divorce
First things first, it sounds like the title to the house is already in your name since your husband signed a quit claim to the deed. But that does not necessarily mean he is off the mortgage obligation.
Go here to learn how to learn how being on the mortgage yet not on the title
can leave a borrower in a precarious position.
Assume Your Mortgage After Divorce
But I digress. Your main question is about getting your spouse's name off the mortgage. Short of refinancing or modifying your financing's existing terms, you could call your loan servicer about assuming your mortgage.
Assuming your mortgage means your husband's name would come off the mortgage and you would be solely responsible to pay back the balance according to the terms of the loan.
If your income is sufficient to meet qualification guidelines (in other words, without your husband's income), you might be able to accomplish this relatively quickly. Because the assumption paperwork is minimal as are the closing costs, it could be the simplest solution.
Best wishes and good luck,
Unaffordable Mortgage After Divorce By Sandy S. in N Stonington, CT
I recently divorced and was awarded the house. My husband did not pay the mortgage since March of this year and I notified the bank as we were already in a 2% refinance program for 4 years.
They sent me a good faith estimate and are charging me all the back money, new title insurance costs, taxes and insurance, and $900.00 processing fee, etc.
We had money left in escrow and they did not apply it to this closing and they want me to bring in $6424, which I do not have.
I am currently unemployed and cannot afford this mortgage, so I am listing my home for sale. We have been in this home for 20 years and already have title policies which have my name on them.
I need advice on what to do at this point? Thank you.
Ask Kate answers: Unaffordable Mortgage After Divorce
The thought of selling your home after owning it for 20 years can't be easy. Even so, you are smart to be proactive and take steps before foreclosure becomes an immediate threat.
HAFA Foreclosure Alternatives: Short Sale and Deed in Lieu of Foreclosure
If Fannie Mae or Freddie Mac owns your mortgage, you may be eligible for the Home Affordable Foreclosure Alternative Program (HAFA). In some instances, borrowers are rewarded with a cash payment for participating in one of the options.
Successfully completing a HAFA alternative also side steps the damage of a negative foreclosure record on a homeowner's credit history.
Read about the main two options in the HAFA Program - Real Estate Short Sale
and Deed in Lieu of Foreclosure
- before calling your loan servicer to get the ball rolling.
HAUP Mortgage Forbearance
If your mortgage is not backed by Fannie Mae or Freddie Mac, you can also read about HAUP Mortgage Forbearance
, another option from the Making Home Affordable Program but specifically for unemployed homeowners.
Deb's Story About Mortgage Foreclosure
Next meet Deb, a homeowner who had some tough decisions to make at Short Sale vs Mortgage Foreclosure - The Agony of 21st Century Homeownership
She wrote me back to let me know of her decision at Reaffirm or Not to Reaffirm a Mortgage after Bankruptcy
I wish you the best,
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