Wife and I are getting a divorce and she might be unable to refinance in her name

Not sure what your question is here but if she is being awarded the home in the divorce and you are both on the mortgage now and you want to be off of the mortgage then she would have to refinance the loan in her name alone and qualify on her own merrit. A person can be removed from the deed via a quit-claim deed bu that can't be done with a mortgage. If she is unable to qualify on her own and you want to be off of the obligation then it might be best that the house be sold. Discuss it with her and the attorney.

If she cannot refinance on her own, then she probably cannot afford the payment on her own either, which is a recipe for disaster regarding your credit.. It's best you just sell the home and move on... but you need to hammer out these details before the divorce is complete rather than after.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

You can do a HARP refinance and take your name off the mortgage. Fannie and Freddie allow this. Perhaps the bank you were speaking with doesn't do HARP loans or has limits on the LTV. Find a local broker, not a bank.

The best advice I can give you is DO NOT, DO NOT, DO NOT allow your name to be taken off the title to the property without the underlying mortgage being paid off. The worst thing you can do is still owe on a debt that is secured by an asset you can't control. Why? Let's say you take you name off title but stay on the loan. She stops making the payments. You decide that the best way to pay off the loan is to sell the home. You can't, because you can't sell what you don't own. If she can qualify for a nw loan in her own name, make the refinancing of the loan to remove you from the loan a condition of the divorce. It's the best way to protect yourself. Good luck. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

The borrower normally has to qualify for the new mortgage based on credit, verified income and assets, etc. There are some refinance options where that is not required but rarely when one of the current borrowers will not be on the new mortgage.

Not sure what your question is but if she can't qualify with her debt to income ratio by herself and you are currently on the mortgage they will not take you off.

What is the question?

Okay, now it's clear. If you add your soon to be ex-wife on a new HARP refi, the underwater issue will rear its ugly head again when she tries to refi you off the mortgage. Unless you are in an area where property values are rapidly increasing, you could be even more "stuck" with the property AND responsible for the mortgage. Also, at this point HARP can only be done once. It also doesn't matter what your divorce decree says, if your on the mortgage, it's your responsibility from the lenders perspective. If you decide to short sell the property, keep in mind that divorce is an acceptable "hardship" that the banks typically accept and you don't have to prove that you can't afford the home as in other short sale situations. You'll take a big hit on your credit score, but you will be finished with the property and can rebuild your credit.

I am guessing you are wondering your options. You dont have many if it is a divorce then she will need to refinance the property to remove you from the obligation.

Are you deeding the house to her? If so, she will need to qualify on her own, however FHA allows for a non-occupant co-borrorwer. If she knows of someone willing to do this she may be able to get a mortgage. She doesn't want to get in over head and take out a mortgage that she can't afford. I only loan in Florida so she is best to find someone in your area. Best of luck. First Choice Mortgage, Linda Burek, NMLS #310096.