[Ruby]

Divorce is final, and we need to remove each other’s name from 2 properties each.
Interest in the 4 properties is under 4%, and the only way with this bank is refinancing.

Which sucks cause interest rates are over 6%.

Ex just told me that we should just keep things how they are, so we don’t have to do paperwork and pay fes and a higher rate.

My FI mind agrees. I owe $20k in the rental property and could try to pay it off quickly to get the deed on my name.

Owe $70k on my house, the loan is on his name so I’d have to get a nbrand new loan. (Not a problem, excellent credit, stable job etc…) But high interest rates.

So… what I’ve learned from this divorce is to NEVER trust ANYONE.

This dude was shitty but at the same time is a good dad, and I’d think he wouldn’t mes up this, but…
Tell me how bad things could go?

Should I even consider it?

[Melissa]

No, get his name off what you own and your name off what he owns.

He could tank your credit so fast if he wants to be a douche.

[Jule]

Listen to your gut. Ensure individual names are on the agreed properties and move on.

Untangle yourself from someone you no longer want to be legally associated with due to trust issues.

[Sue]

Usually you can have it in the court order to have each person sign the grant deed.

Depending on what state you live in and attorney can prepare them and in the r ND t section you put dissolution of marriage and the don’t charge the transfer tax

[Kerri]

Keep in mind he is proposing this because it will directly benefit him. Do you definitely know if he will be able to get the properties into his name?

The peace of being completely disconnected from him will be worth the fees and higher interest

[Kara]

I would consider paying off the $20k loan, then refinancing the $70k loan. You will never be completely disentangled from him because of your kids.

But future you will likely want as few entanglements as possible.

Lock down your financial independence now.

[Jacob]

4% versus 6% on 90k isn’t going to be a huge difference especially if you’re going to work at paying some of it off.

Do the math, what’s the piece of mind worth to you?

Cause I bet by the time you calculate it out.

What a lawyer costs to draw up a contract and what your piece of mind is worth.

The interest difference won’t seem like that much.

[Dawn]

You can consider it but go through a lawyer to write up an agreement without that do not do it.

[Ariane]

On that small a balance 6% versus 4 does not make a huge difference, especially as you are considering to pay off quickly.

I’d rather pay the fees for peace of mind.

A clean slate is worth something.

You don’t want to be blind sided again.

[Kathleen]

Follow the court order and remove his name. If not, you can’t make decisions on your assigned two rentals, or sell one or 1031 exchange them without his consent.

And what if your rentals appreciate in value more than his during this period? He may be entitled to some of it.

Please see an attorney for a contract if you decide to do this.

Good luck

[Tristan]

I’d personally want myself off anything that’s not going to be mine. I wouldn’t trust someone that I believe is shitty to not do something that ends up hurting me, intentional or not.

And it’s only fair that if you require him to refi to take you off, that you do the same.

If you don’t want the higher interest rates you could aggressively work to pay off after refi.

You’d pay a little more overall still, but not as much as if you kept it long term.

And of course in the future, prenup no matter how great the human is and have a plan figured out like maybe switching off who purchases each property (if they are in to real estate as well) and only the martial home be joint owned if needed

[Jason]

You’re taking a TINY interest payment and using it as excuse to open yourself up for HUGE losses if he becomes vindictive.

The juice isn’t worth the squeeze there. ONE way it can go right, and a million it can go wrong.

Just because it’s amicable now, doesn’t mean it will be in 6 months. Clean break.. pay the difference in interest.

You know exactly what it will cost. HOPE could cost you BIG!

[Damon]

No, you should not consider it. Refi and pay the additional interest.

Long term that is way better than the alternative.

[Dan]

I would suggest working with an attorney to draft a contract for this. Put everything in writing.

Only do this with an attorney monitoring it.

[Michael]

You can quit them. The bank will tell you no because they want the better interest rate terms. Just went through this.

Had to speak with a real estate attorney and send a letter.

As long as the payments stay current there is nothing they can do

[Elena]

Don’t do it. Remove his name from your properties after refinancing to your name only and remove your name from his properties after your name is removed from the loan.

Looks like you only owe $90k on both properties.

Refinance and try to pay it off faster, interest rates would not matter that much.

Quit claiming ownership in the house but being responsible for the mortgage is a really bad idea.

[Corey]

Sounds like you can’t trust the other property so you have your answer.

For others that are in this circumstance and can trust the other party to pay the bills, you can add language to the divorce decree that removes the other party from all practical purposes without refinancing.

This can help with applying to future mortgages.

Note that this is somewhat of a bandaid only though.

It doesn’t remove the loan from your credit report.

[Roberts]

I’d say to definitely go through the process of refinancing.

Things can quickly change post divorce and you’ve already experienced circumstances that have led you to be untrusting.

[Author]

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