How to get out of a VA loan
My ex-husband and I purchased a home through the use of a VA loan based on his service in the military while we were married. We are recently divorced and the home was given to me in the divorce. The deed has been changed to my name only, however I am not able to get his name off the Mortgage (VA loan). I have tried several places to re-finance, however I am upside down (owe about $171,000 and the house is appraising at about $167,500). I don't have any money to make up the difference. Any suggestions? He keeps harrassing me about getting this loan released so he can buy a house......but I'm stuck! by kylean_599_733 from Montgomery, Alabama. Oct 24th 2012
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
If you have been making the payments for the last 12 months and the funds have come from your account, and not a joint account with him, then he can get another home loan... he might or might not be able to use VA, but he can purchase another home.. But if your upside down, then there is no way to refinance right now.. 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
Barb Lanis (BarbLanis)
#69 ranked lender in Illinois - 679 contributions
Your situation is a huge problem and probably one to discuss with your existing servicer. No one is going to be able to touch that outside of them. You no longer qualify for a VA and you're underwater. Please call your lender. Good luck and be diligent!!
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
So he gave you a home with negative equity and he is upset because you are preventing him from buying another? Wow. That's pretty nervy! If the divorce decree shows he is relieved of the asset and the associated loan, then the new lender will not hold your payment against him and he can buy another house. He just can't re-use his VA until this one is paid off. Here is a suggestion: Have him make up the difference so you can refinance, then his name comes off. Until then, he is just stuck. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950
Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions
If you are upside down, there is no way I know of for you to refinance. However, he may still be able to buy another home if he has sufficient remaining entitlement from the VA. Have him call me (or his preferred loan officer) and I will explain. I help loans in AL too. pdumouchel@primelending.com or 843.619.6025
Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,256 contributions
First , who is the lender/ bank?/ linda
The lender if PHH Mortgage. I have tried several places and they have all said the same thing you all have said. I have been paying the mortgage out of my own account since March 2012 so maybe this will resolve itself after a year. I don't have enough in my 401K to borrow against and of course he is not going to pay anything.....
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