complicated situation

[sunnyday]

This is a tough question for the mortgage experts.  I'm currently in the process of almost having my divorce final.  I live in the marital residence and my soon to be ex wants to give me the house as a settlement.  The problem is this:  The deed is in both our names, the mortgage loan is in his name.  We had filed chapter 7 about 2 years ago and now he wants me to get the house refinanced in my name.  Am I going to have a very difficult time trying to get a mortgage for this house in my name because of the bankruptcy and the fact that the current mortgage is in his name only?  We have about 20,000 in equity and owe about 110,000 on it.  I have never had a mortgage in my name before, like I said the deed is in both of our names, but not the mortgage.  Any suggestions or answers would be appreciated

[Anonymous]

Get yourself a nice bottle of wine for the end of the day - you gonna need it when you're done.

Call a Realtor and get a CMA for the house

Pick 2 local banks/CU and 2 mortgage brokers.

Set aside 1 entire day...

The day before call each bank/cu/broker and set an appointment with them to talk about this (do not give them SSN# or permission to access credit)

That morning get up and pull scores and reprots from MyFICO.  Take these and the CMA with you to each appontment to have the LO review and give you feasible options (take notes!).  Don't commit to anyone right then and there.  Figure an hour with each.

Remember to have lunch between appontments sometime..

When done - go home and have the bottle of wine.  Sleep on things and digest what they have told you - when you feel 'ready' (don't stall or procrastimate) call one of them (who you feel can best serve you and that you have confidence in) and get things going -- don't delay for more than 2-3 days after meeting with them.

If you don't understand what they have told you - come here and someone can decipher it for you.

Message Edited by Lady_Scarlet on 01-25-2008 05:33 PM

[ShanetheMortgageMan]

Is was your Ch 7 BK discharged?  When was it filed?

What is your income, what are your monthly debts, what are your credit scores, and how has your credit been since the BK discharge?  Have you obtained new credit since the BK?

Since you are on title and it's part of the divorce decree/agreement (oxymoron I guess when talking about a divorce) the fact that you are not on the current mortgage shouldn't negatively impact your options.

[sunnyday]

BK was filed Oct 2005, discharged May 2006, I have 1 new major credit card since the BK, which I have had for 2 years, with no lates, but 1 collection just popped up that I'm disputing because it isn't mine.  I still have to find out what my scores are. I am paying down my credit card to 3% utilization. The problem is I have recently gotten a new job that is salary, but I have only been there for 4 months.  I also had cosigned for my sons student loans many years ago, so that is hurting me. I have 3 Sallie mae loans on there and my credit card is my only debt.  I do not think my chances are very good.  I would appreciate any advice, because I'm being pressured by the attorneys to settle before it goes to trial in late February.

[GregB]

My situation is somewhat similar. It is my flaky ex-wife that is gone and I am keeping the house and my son. The mortgage is in both our names. I'm in California and I do know that the laws and norms vary state by state.

After 6 figures in lawyer and accounting fees and 4 years I can tell you there was never any question or any arguments about the fact that the existing mortage stays intact no matter who keeps the house. There were two reasons that I kept the house on top of the main reason, which is that it is the only home that my young son has ever known. They are:

1. If sold, there is the loss of the sales costs and the fact that the money goes into an escrow account. Then her sleazy lawyer can run up bogus fees and go petition the court to get paid out of the escrow account.

2. If she kept it, my name would still be on the mortgage. When she paid late or defaulted, my credit would be ruined. Even if she paid it properly, the additional loan would make it tougher for me to buy another house.

You should check with your lawyer but my guess is that part of the settlement will be that the mortgage stays intact until paid. If he wants his name off it, he needs to motivate you to do so.

[Anonymous]

Arg!

I could write a book - a really long book - regarding this issue. When the ex and I divorced, the judge would NOT make him refi, even though he made ample money. Three years later, I have multiple 120+ day lates on MY report! I even sent the mortagage company proof that judge declined my attorney's petition to get the house out of my name! So- hire the most unsavory lawyer you can find -- apparently that works.

[ShanetheMortgageMan]

---

sunnyday wrote:

BK was filed Oct 2005, discharged May 2006, I have 1 new major credit card since the BK, which I have had for 2 years, with no lates, but 1 collection just popped up that I'm disputing because it isn't mine.  I still have to find out what my scores are. I am paying down my credit card to 3% utilization. The problem is I have recently gotten a new job that is salary, but I have only been there for 4 months.  I also had cosigned for my sons student loans many years ago, so that is hurting me. I have 3 Sallie mae loans on there and my credit card is my only debt.  I do not think my chances are very good.  I would appreciate any advice, because I'm being pressured by the attorneys to settle before it goes to trial in late February.

---

You should definitely find out your scores... here at myFICO.com is the only website I recommend where a consumer should get their scores from.  It gives you your true FICO scores, not FAKO scores like TrueCredit or ScoreWatch.  Quick way to get the collection off your credit... #1, call up the collection agency and ask who sent them the collection account, #2 call up the original creditor and talk to them.  By the end of that conversation you will either realize the collection account is yours or the original creditor will realize they made a mistake and will recant the collection from the collection agency (make sure they do this immediately and give you something in writing stating it is not yours).

What did you do before you your new job of 4 months?  What is your salary amount? 

Are the co-signed loans for your sons paid on time?  Does he pay them?  If so then the lender will exclude them from your debt to income ratio calculation if you can provide evidence that they've been paid by your son.  If he doesn't pay them, or if they are paid but from a joint account with your name on it, what are the total student loan payments?

What is the minimum payments on your credit card debt?

If everything checks out, you can qualify for a conforming refinance through a Fannie Mae backed lender... as Fannie Mae just requires 2 years from the filing date on a discharged BK.

[GregB]

Tex,

Hiring an unsavory lawyer sounds like a good idea at first.......

That is what my ex did. If I had not know better and hired a similar "hardball" lawyer, they would have argued back and forth, sent outrageous letters which prompt outrageous response letters, etc. The lawyers would be rich and we would both be broke.

You need to find a GOOD lawyer that will counteract the sleazy one. It is a sad, sad system created by lawyers, for lawyers. Best quote I heard is "A divorce stops being fair as soon as the first person hires an attorney".

You should probably go after your ex for the damage to your credit report. Perhaps, do it soon so the amount will be small enough to stay in small claims court. Or go back to court and force the sale of the house, now that the sale costs will be borne by your ex.

[Anonymous]

Yo~

The house ended up being sold - at no profit (HaHaHa!), so the last baddie on that account is almost three years old. As far as going after the ex: My philosophy is that what's over is over and the less contact I have with him, the better off I am. Now he can screw up wife #2's credit, while I married a better man. Additionally, I provided WaMu every single piece of proof they requested to get this mark off my credit, only to be told "You should have known this would happen."  Riiight. When you have been married to someone for 15 years, don't put your name on the mortgage because you should be aware that a couple of years down the road, he's going to have an affair with his coworker. Oh well.