Spoke with the USDA specialist today and she indicated quitclaiming my husband off the title for our property that is in default (IIB in 2007 BK7) WILL be sufficient for him to close on a USDA loan. This is, of course, assuming everything else comes back clear.
The only caveat and difficulty is that the property here in RI is a rental property and I will still be collecting rental income. They want to see official notification from the bank stating they (the bank) will collect the rental income in order for the rental income to not be included in our financial figures in regards to qualifying financially for the USDA loan.
We are on the cusp of the financial qualifications if the rental income is included. If it is not included...we are way under the threshold.
I'm not worried about it...I'm fairly certain we still qualify even WITH the rental income included.
The good news, though, is that we CAN obtain USDA financing by quit-claiming my husband off the title for our currently defaulted property. My name will stay on the title while the property is resolved either through short sale, DIL, or foreclosure.
The only caveat and difficulty is that the property here in RI is a rental property and I will still be collecting rental income. They want to see official notification from the bank stating they (the bank) will collect the rental income in order for the rental income to not be included in our financial figures in regards to qualifying financially for the USDA loan.
We are on the cusp of the financial qualifications if the rental income is included. If it is not included...we are way under the threshold.
I'm not worried about it...I'm fairly certain we still qualify even WITH the rental income included.
The good news, though, is that we CAN obtain USDA financing by quit-claiming my husband off the title for our currently defaulted property. My name will stay on the title while the property is resolved either through short sale, DIL, or foreclosure.
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