Q: I’m going through a divorce. My soon-to-be ex-spouse is supposed to refinance our house and buy me out.
Instead, he is trying to get me to sign for a home equityYour share of ownership in a company. Stockholders are often referred to as equity investors, because they invest in the equity of a company. loanA Loan is an amount of money that is lent to a borrower, who agrees to repay it plus interestInterest is money charged for the use of borrowed funds. Usually expressed as an interest rate, it is the percentage of the total loan charged annually for the use of the funds.. so he can pay off the house and pay me my percentage.
Do I have to help him by signing for the equity loan? My divorce papers say that he has to refinance, not get a home equity loan to do this. Please help!
A: I’m a little confused. Why would you take on more debt to help someone you don’t like and are divorcing? If you sign for a home equity loan, and give him the cash, you’ll be borrowing money to pay yourself off. This doesn’t make any sense to me.
If your papers say that your spouse is supposed to refinance and pay you off, then he should do that. Once the loan with your name on it is paid off, you can quit claim your interest in the house to him.
But under no circumstances should you quitclaim your interest in the home to him while you’re still on the mortgageA Mortgage is a document granting a lien on a home in exchange for financing granted by a lender. The mortgage is the means by which the lender secures the loan and has the ability to foreclose on the home.. Otherwise, you’ll be left owing on the house without any collateral to back it up.
See your divorce attorney for more details.
June 30, 2006.