Husband and wife own the home jointly. It was purchased for $1,080,000 with 100% financing. Using only the husbands credit score and income.
They are now filing for divorce.
The home is listed with a realestate agent for $1,200,000.
Wife wants to buy the home, but will do 100% financing, with stated income, with verified assest of $15,000.
Her credit score is 675 to 715 depending on the reporting agency agency.
Is there someone who can do a loan like this for my client?
I need this deal to close in as little as 3 weeks.
Am I missing something here? Literally no equity in the home (after realtor fees). She wants to buy 1/2 the equity and she has $15K cash and wants 100% financing? And as someone said, her r.e. taxes will eat up that $15K. It may be a different story if we knew more. Someone living in a $1M home is going to walk away possibly with some serioius assets after the divorce but that is just a guess. Based on the above info, who would do this deal with her? Not me.
Why does a single woman need a $1.2 mil home straight out of a divorce? That’s a lot of home for 1 person. Some people just don’t have their priorities correct in life.
Yeah, Most divorced couples eventually realize that life becomes a heck of a lot different when you try to maintain a similar pre-divorce lifestyle while you only have half the assets. She’ll wake up sooner or later to reality.
This sounds a bit strange. They buy the home for $1,080,000 and now they are trying to sell it for 1.2 million; which is 120K more than they paid for it. Technically half of that 120K belongs to the wife so why is she paying 1.2 instead of just 1.14 million? Why is she just not refinancing the property and paying off the husband? Also, figuring the 8K payment that was mentioned above she will need to be stating 19K a month to keep her back ratio at 42%, and that is assuming she has zero other debt which is doubtful because the upkeep on a house that size is enormous. That 15K in the bank will not even cover two house payments if she gets in trouble. She needs to go no ratio to avoid any income questions to start with, but to me this looks like an ALT-A loan all day long in terms of qualifying and a foreclosure waiting to happen once it closes.
Unless she’s getting a fantastic settlement and or alimony/child support (which we all know is not always counted - depends on which lender you use), I wouldn’t think this could happen.
But it may be a good tip for a future foreclosure.
No sweat. It was one of my regular investor clients so I read him the posting and he got a good laugh as well. He could not see the emoticon though. That is the funniest part.