A friend of mine got divorced. In the divorce decree, the husband was given the house and the responsibility for paying the mortgage. She is listed on the loan as well though. Since they have been divorced, he is falling behind and several late payments are showing up. She is trying to buy a car now and getting declined because this mortgage account is delinquent right now. Any thoughts???
That is one of the bad things about divorce decrees.... it is not binding on the lender. The best she can do is to contact the lenders that she has applied to and explain the situation and show them a copy of her decree. They may override the decline. Not that it would help her credit, but she can take him to court to have him held in contempt for not making the payments. Wouldn't gain her anything though.
I believe she has to go to court, to get her name off the mortgage. I don't know how these things work, but she should look into it w/ the mortgage co. ASAP!
Divorce decrees DO NOT superceed contracts. I found that out when I went thru my divorce in 97. Only way to get her off the mortgage note is refinance it into her name. If he continues to pay it late it will affect her credit until she refinances it. Even a quit claim deed (where he signs ownership over to her thru the court) will NOT take her off the note and it will be reported on her credit.
In order to get off the mortgage note you need to take out a different mortgage and sign a different note. You can't just remove someone from the note without refinancing. The note is the legal binding contract to the lender. It is what you agree to pay when you buy a house. This is how it was explained to me when I wanted my ex husband off our home. They said he can sign the house over to me but it would not take him off the legal note, therefore he would be totally responsible if I decided NOT to pay the mortgage and it was reported on his credit until I refinanced 3 yrs later under mine and my new husband's name.
do not take that question the wrong way, b/c I do not know anything about mortgages, but it does not make sense to me, i am not saying you are wrong though. But if she wanted it out of her name, woulnt the hubby need to refinance it in just his name? I mean if she refinanced it, it would still be in her name
Well yeah if she wants to give him the house solely she can have him refinance it in his name only but then all the money she put into it is gone. He could sell it and take all that profit. Now, if she doesn't live there anymore, wants HER name off the note then she would have to get him to refinance in his name ONLY....I couldn't tell if she was still living there in the house or not. In my case I got possession of the house and my ex was left on the note. I could have screwed him by not paying the mortgage and then his credit would be messed up. In this case the best bet is for her to get off the note is she no longer lives there, thus taking it off her credit and she won't be liable if it is repoed and they try to collect.
but the original post says the hubby was given the house in the divorce decree, so i would think that since he was given the house, and she has no legal rights to it, she would want her name off of the mortgage, correct?
One would think so. I don't know this person and can't speak for them. Once you take your name off the note then all the money you put into it is gone.
