Post by feistypants on Sept 8, 2012 18:43:55 GMT -5
SO has a house with his xw that she is in the process of making repairs to in order to sell. His name is still on the mortgage, but the divorce settlement absolves him of financial responsibility for the house. He is now looking to purchase a new house... one that could very easily be our forever house if we stay together.
Has anyone had experience with a similar situation? How does this impact securing a mortgage for the new house?
If he's still on the mortgage it would still show up on his credit report. She needs to refinance in her name only or sell the house.
Correct.
I've dealt with more than one short sale/foreclosure where the husband and wife divorced, both names stayed on the house, and whichever spouse was to be responsible stopped paying the mortgage and it screwed both of their credit.
Post by EmilieMadison on Sept 8, 2012 18:54:41 GMT -5
If he's still on the mortgage, then the mortgage company can still hold him financially responsible for the house, because a divorce decree doesnt remove him from the loan itself*. This means it's going to show on his credit report that he still has a mortgage.
And, if he's on the mortgage, he's also on the deed. So, he's going to have to have a hand (in signature, at least) for her to sell. Unfortunately, if she has to sell for less than what they owe on the mortgage, he could also be held responsible for coming up with the difference.
*This is not legal advice, and this could be completely different in your state.
Post by LoveTrains on Sept 8, 2012 19:07:29 GMT -5
I know I am constantly bringing everything back to this short sale that I am trying to buy right now, but the seller has to sell because of a divorce. The divorce decree was supposed to remove the ex-wife from the house. However, it hadn't yet happened and the first bump we had was that the ex-wife had to file a quitclaim on the house or something like that to get her removed from the deed.
I know I am constantly bringing everything back to this short sale that I am trying to buy right now, but the seller has to sell because of a divorce. The divorce decree was supposed to remove the ex-wife from the house. However, it hadn't yet happened and the first bump we had was that the ex-wife had to file a quitclaim on the house or something like that to get her removed from the deed.
A quit claim deed will remove someone from the title/deed, but if they're still on the mortgage, the only way to remove them is to refinance or sell
I know I am constantly bringing everything back to this short sale that I am trying to buy right now, but the seller has to sell because of a divorce. The divorce decree was supposed to remove the ex-wife from the house. However, it hadn't yet happened and the first bump we had was that the ex-wife had to file a quitclaim on the house or something like that to get her removed from the deed.
A quit claim deed will remove someone from the title/deed, but if they're still on the mortgage, the only way to remove them is to refinance or sell
The lender will count that mortgage payment as part of your debt. As others have said, the only way to make it go away is if she refinances to her name only or sells.
Post by thedutchgirl on Sept 8, 2012 20:57:26 GMT -5
The divorce decree means nothing to the bank. He's still responsible for the other loan, and until she refinances, it is his debt too. Regardless of the decree.