Possible to do the following house swap?

Cliff
Husband and wife are divorcing. Their house is co-owned by both of them and it is a VA loan from the husband's military service. The wife wants to stay in the house, but refinancing would be impossible without paying excessive fees. Can they do the following...the wife signs over her right of ownership of the house to the husband, he refinances the loan to get a better interest rate...then the wife leases the house from the husband under a lease-purchase type arrangement, with the understanding that the wife will purchase the house within a year. Do you see any problems that could occur from this situation? Are they overlooking something?

Angelique
Why not keep financing as is and wife pays rent to ex? When she can qualify for a mortgage, then she can buy it from him.

Valentine
Yes. she can issue 'quit claim" deed today to relinquish her rights in property.If home has enough value you can refi in your name only. I am assuming you will not need wife's income to qualify for the new loan.After you refi do anything you in terms of leasing it back.

Cathryn
too many things can go wrong. why refinance for just one year?