Recently divorced..ex-husband can't refinance

[Anonymous]

As stated above, I am recently divorced and in the decree it states under Property to Husband: "100% of the community interest and 100% of each party's interest in the 2004 (exact make and model)boat motor vehicle, vehicle identification number unknown, together with all prepaid insurance, keys, and title documents" My ex is financially not able to re-finance this boat to have me taken off the loan. Is there anything I can do to have this not affect my debt to income ratio? I have no doubt that he WON'T default on this loan it's just affecting my credit by being on my credit report. A friend told me to have a quitclaim deed written and send to the credit bureaus will this work? Any advice? Thank You

[ShanetheMortgageMan]

You can exclude it from your debt to income ratio by providing any prospective lender a copy of the divorce decree and cancelled checks from your ex-husband showing the payments are coming from his account.  I don't think you'll be able to remove it from credit until you are no longer personally obligated on the boat loan - and I don't believe the decree relieves you of your obligated on the boat loan, the boat, yes, but not the boat loan.  I would contact the lender who holds the boat loan and see if your husband can just qualify for it on his own, they might be able to re-qualify with just your husband so you can be un-obligated from the debt.

[koz08]

A divorce decree does not, by itself, get you off the loan.  You would have to apply for a title change, which more than likely would cause the need to refinance the original loan.  Only the lender can release you off of the current loan.  As it really depends on the lender that holds the note, you could request it regardless by showing a copy of the decree and see if they will be willing to take you off.  But they are not obligated to do that. 

I actually had run into this situation before on a car and tried to use a decree through Ford Credit.  They would not accept the decree to take anyone off the loan and the state would not accept the decree to take anyone off the title.  I was told my only option was to refinance the loan. 

[Anonymous]

There is one other option available to you. Contact the lender (you are still on the loan, so they can certainly discuss it with you) and ask them if they would be willing to allow your ex to novate you off the loan. A Novation Agreement is a document that allows an existing borrower to be taken off of a loan.

This is most often done in real estate loans, and while I don't know for sure that you can do it with other types of secured loans, I can't imagine why you wouldn't be able to. It will require both you and your ex to sign the agreement, with you agreeing to come off the loan and relinquishing any rights to the property (which your divorce agreement already does anyway) and him agreeing to be solely obligated for the debt.

The lender MAY need to re-pull his credit, but they may be able to do it just based on the payment history, particularly if you explain that he's the one making the payments anyway.

It's worth a try. The worst they can say is "no."