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jenniem
Posts: 1
Registered: ‎09-14-2010
0

Foreclosure

Good Morning,

 

My husband was recently divorced when we met.  The judge in the divorce ordered him to quick claim deed the house to his ex-wife.  A couple of years after the divorce she decided to stop making the house payments thus causing a foreclosure.  Since the loan was in both names (my husband being the primary borrower) there is now a foreclosure on his credit report(s). 

We are in a place that we need to refinance our home but no banks are willing to consider us.  Does anyone have any suggestions?  We have tried explaining the situation and even though most can understand none are willing to help.

I have tried asking the credit bureaus to remove the foreclosure but have been unsuccessful to this point.

Any help, suggestions, people in similar situations would be greatly appreciated.

Thank you in advance for any input.

Jennie M.

Valued Contributor
GregB
Posts: 1,669
Registered: ‎05-24-2007
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Re: Foreclosure

[ Edited ]

When your husband married his previous wife, the law bound them together in many ways. His divorce separated many of those ties, but not ALL of them. The mortgage company loaned money to both of them so they are both responsible for the debt. The mortgage company does not care about any orders made in the divorce since that involves only your husband and his ex.

 

I'm sorry to say that it IS his foreclosure. You should also check to make sure he wont get a 1099 for the "profit" in getting out of the loan or that the mortgage company can't come after him for the shortfall. Hopefully you are not in a state that allows recourse.

 

I suggest you post the state involved. Also post if it was a mortgage for purchase or a refinance since that can also make a difference. Somebody else could take that information and give you some more information that should help.

 

He can go after his ex for damages but that is difficult, at best.

 

Sorry to be the bearer of bad news.

Senior Contributor
O6
Posts: 3,626
Registered: ‎10-13-2009
0

Re: Foreclosure


jenniem wrote:

Good Morning,

 

My husband was recently divorced when we met.  The judge in the divorce ordered him to quick claim deed the house to his ex-wife.  A couple of years after the divorce she decided to stop making the house payments thus causing a foreclosure.  Since the loan was in both names (my husband being the primary borrower) there is now a foreclosure on his credit report(s). 

We are in a place that we need to refinance our home but no banks are willing to consider us.  Does anyone have any suggestions?  We have tried explaining the situation and even though most can understand none are willing to help.

I have tried asking the credit bureaus to remove the foreclosure but have been unsuccessful to this point.

Any help, suggestions, people in similar situations would be greatly appreciated.

Thank you in advance for any input.

Jennie M.


Unfortunately divorce decrees virtually never can bind a pre-existing creditor.  In the situation you've described, the mortgage holder is well within their rights to hold your husband responsible for the debt, which includes credit bureau reporting.  Ultimately the only person who can help him solve this issue is the mortgage holder themselves.

 

Your husband would likely have recourse against his ex-wife, but since she was unable to pay the mortgage it may be that he would not be able to collect and judgment he ultimately obtains against her.  Still, it is worth getting a judgment as judgments can live a long, long time and in another ten years or so maybe he could use it to get money out of his ex-wife.  If the property is not under water, perhaps he can obtain a quitclaim deed from the ex-wife and he can then assume the mortgage obligation directly.

 

In any event, you should consult with a local attorney.  These situations can be complex and there is the potential for problems far greater than negative information on his credit report. 

IAALBNYL

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