Divorce, foreclosure...question

Discussion in 'Credit Talk' started by rhondak, Sep 16, 2003.

  1. rhondak

    rhondak Well-Known Member

    ...before I tackle this.

    Situation is that in my fiance's divorce decree, the ex was made responsible for the house and everything involving the house. She allowed the house to be foreclosed on. It was then resold to her (actually her mother) for half the amount of the original mortgage.

    I am trying to get the foreclosure off of my fiance's credit report.

    Do I just go normal "not mine" route and hope it's changed hands so often they no longer have the paperwork?

    Or is the divorce decree adequate documentation to have it removed on that basis?

    Thanks for any advice in advance.

  2. Hedwig

    Hedwig Well-Known Member

    Dispute as not mine and hope they can't find it.

    Believe it or not, divorce papers are really worthless for this kind of thing. Even if his name was taken off the house, if the mortgage isn't refinanced he's still responsible for it.

    I know this first hand. I had to refi my house to get my ex-husband's name off before he declared bankruptcy and it really got nasty.

    A friend of mine had to go to court to order her ex-husband to refinance. Even if she signed a quit claim, she was still responsible for the mortgage. So be careful what you sign. You could have your name off the deed, therefore no longer own the house, but still have the responsibility to pay the mortgage. And you'll have trouble buying another house that way.
  3. rhondak

    rhondak Well-Known Member

    Well, he isn't on the existing mortgage, he was on the one that was foreclosed on.

    I'm really not worried about a collection type thing, just getting it off the report.

    I guess I just have to hope they can't validate (it's changed hands 3 times this year so far)

    Luckily, it's only on 2 reports, not on all 3.
  4. Hedwig

    Hedwig Well-Known Member

    Same principle. I'm just saying that the divorce decree isn't sufficient to get it removed, because it doesn't relieve the liability of the debt.

    In fact, if you sent it to the CRA, you would in essence be confirming that the debt was his.
  5. rhondak

    rhondak Well-Known Member

    Yep, that's what I was afraid of and trying to convince my fiance of. He's a bit naive about this stuff (like I'm not - but not quite to the same extent)

    I think the mortgage that was foreclosed on changed owners several times, so the good news is that at one point when it was transferred, it showed paid off from that bank. That's one of the few good tradelines he actually has.

    Only 2 of the CRAs have the tradeline with the foreclosure and after the foreclosure, it was sold to another company, who then posted notices on the doors of these homes (they apparently got most of a neighborhood) offering to sell them back to the "owners" for half what the old loan was for.

    His ex tried to get him to do it and he wouldn't (duh) but she got her mom to buy the house - I don't think his ex's name is even on the house anymore. I think her mom owns it.

    Anyway, I guess I'll just hope that because of all of the changing of ownership, that maybe original documentation has been lost or misplaced or is no longer with the bank that's reporting the foreclosure.

    *sigh* This could be a hard one to get rid. The good news is that we don't have to get rid of it to get the mortgage. The mortgage company we've been talking to is willing to overlook the foreclosure because of the divorce, but they want some of the other stuff off.

    TU is now his best report. Only 3 derogs left. EFX still has 7 but 2 are dupes and all are under $100 except the foreclosure. A lot of little bills she didn't pay when they split up. Experian is just being A$$holes. They don't want to delete anything. They're showing 10 derogs even though most have already been deleted by the other two CRAs because they can't be verified.

    Actually got 2 new ones on EFX this month - his ex again - old bills she didn't pay and I didn't know about. Was down to 5 on them until this month. One electric bill and one cable bill.

    Damn, I wish he would've gotten his name off of everything when he moved out. Would've made a lot less work for me to clean this mess up.
  6. cannoda

    cannoda Well-Known Member

    Why are you not worried about a "collection-type" thing? He appears to be liable for the unpaid balance. I don't see anything stopping a CA from coming after him later.

    If she is still living in the house, notwithstanding the fact that the deed is in her mother's name, I would probably file a contempt motion in the original divorce proceeding for trashing your ex's credit. The circusmstances you described have "fraud" written all over it.

    Its worth talking to a lawyer about.
  7. rhondak

    rhondak Well-Known Member

    I think if it came down to going to court over a collection he would win based on the divorce decree making her responsible for everything (including arrearages) They might try to collect, but I don't think they legally would be able to.

    Also, the original loan was probably way overpriced. There was a lot of "predatory lending" in this area during that time. I doubt the original mortgage company would want to go to court and face those charges. Personally, I think that's why they foreclosed on so many at once and sold them.

    Basically, what these companies did is over appraise the value of the house, provide mortgages to people with poor credit with nothing down because they were getting so much more than the house was actually worth.

    The people who bought into it thought they were getting a good deal because they didn't need any money down and they were provided a mortgage when no one else would.
  8. rhondak

    rhondak Well-Known Member

    Oh, and I guess he talked to the electric company who has a bill in his name and they already said if he brings the divorce decree in, they'll take it off his credit report. I told him to make sure he gets a UDF.

    Also, he DID call to try to get his name off that bill when he left and she did something to stop it because she had her the two kids living in the house and didn't want the power shut off.

    The Electric co themselves did not report to the CRA, but they assigned to a CA that did. I figure if we can get something in writing from the OC, we can easily fight the CA for removal.

    Yeah, I think what was going on with the house, foreclosure, reselling, etc., was extremely fraudulent. Because now he has a foreclosure on a $72 balance and her mom has a house with a mortgage for $40 and payments of $350/month.

    She was trying to get him to make her house payments, too, lying about the amount of the house payment, but she did get caught lying about that in court. Obviously, that was dropped.
  9. lbrown59

    lbrown59 Well-Known Member

    1*I think if it came down to going to court over a collection he would win based on the divorce decree making her responsible for everything (including arrearages)
    2*They might try to collect, but I don't think would be able to.
    1*No he would not because it has no bearing or effect on the contract he signed with the mortgage company.
    2*Wrong;they have a legal right to collect due to the loan agreement with the loan company.

    THE END ** *** ** LB 59
  10. rhondak

    rhondak Well-Known Member

    Well then what good is a piece of paper, signed by a judge saying that he is not responsible? Would it then only give him the right to turn around and sue her?
  11. Hedwig

    Hedwig Well-Known Member

    That's about it. I, like many people, thought that because the divorce decree said who was responsible for what, that it would be followed. But for most credit cards, you have to reapply to get the other person removed. My ex-husband has several cards with my name still on them. When I called the credit card companies, they said that he would have to reapply in just his name. He's not going to do that, his credit is worse than mine.

    To get him off of mine, I either had to reapply or get a form signed by him stating that he wanted his name removed and was no longer responsible for the account, and then they reconsidered if they would let me keep the account. Sounds like reapplying to me.

    He threatened to declare bankruptcy, so I took responsibility for most of the cards. But some of them STILL have his name on them. He doesn't have a card and can't use the account, but his name is there.

    So, you could go to court and get a judgment against the former spouse based on the settlement, but if there are no assets, you wouldn't necessarily get the money. If there are assets, like a house or car, you might force a refinance or a sale of the property to settle the debt.

    Bottom line, if you signed for the account, it's yours until you get the creditor to remove your name through whatever means they require.
  12. lbrown59

    lbrown59 Well-Known Member

    Re: Re: Divorce, foreclosure...question

    Well, then what good is a piece of paper, signed by a judge saying that he is not responsible?
    1* Would it then only give him the right to turn around and sue her?
    1*Rite that's how it works.

    You See he has signed two different agreements the bank note and the divorce decree and is bound to the terms of booth.

    Also He and his Ex.cannot enter into an agreement that would deprive the bank of the rights they have under the contract with him.

    Hopes this helps explain some of how it works,
  13. rhondak

    rhondak Well-Known Member

    Luckily, he didn't trust her enough with money to have many joint accounts. None of the credit cards nor bank accounts were ever joint. He wouldn't even let her have a cell phone on his account after she ran up the bill a few times. (She was pissed when she found out he put me on his cell phone account - can't imagine how mad she'll be when she finds out I'm on his bank account, too)

    He co-signed on a car for her that she let go back (I've already gotten that deleted from all reports) and they were joint on the mortgage that foreclosed last year. She still lives in the house, but it's now in her mother's name, not hers.

    The house is probably the only asset she (or her mother I shoud say) has but since it's in her mother's name, I doubt there is anything we can do about that now.

    I'm just hoping now that the old mortgage company can't validate since it's changed hands so many times.

    For the mortgage company we've been talking to, having the foreclosure on the CR isn't as big a deal as the little collections. (mostly utilties that he didn't get out of his name right away when he moved out)

    One of them we're thinking of trying the "goodwill" route and paying and asking them to remove from CR. (It's only $71) and the other has agreed verbally (but not in writing yet) to take it off if we pay ($279) as long as we show them a copy of the divorce decree. In both cases, we're going straight to the OC, not the CA who is reporting. Both of those are only a few months old.
  14. mrFiXit

    mrFiXit New Member

    Yes remember note and mortgage or deed of trust depending on what state you are in are two different things. You don't get a mortgage you give it. You have the note and the mortgage is the collateral for the note. If she had refinanced before the foreclosure you should be ok, and his name off the note. Then you would quit-claim deed her the property which was probably already done in the first place when you went through the divorce, never sign a quit-claim unless your name is going off the mortgage unless your selling the house. Basically signs away ownership while remaining liable for the note. I'm a real estate investor by trade ;o).
  15. rhondak

    rhondak Well-Known Member

    She did not refinance before foreclosure.

    It foreclosed. Bank sold it to 3rd party. 3rd party sold it back to the ex (or her mom).

    So what does that do to the deed status?
  16. mrFiXit

    mrFiXit New Member

    I'm often that 3rd party, and foreclosure can be a nasty thing, I wonder if they stuck it to her you have to be careful buying foreclosures and selling back to the original owners (usury), but with it being her mom it probably wouldn't apply. Well if the foreclosure went through then the bank foreclosed and when they sold the 3rd party got clear title. Once you're foreclosed upon you don't own the property anymore in some states you have rights of redemption, but in any case the deed now is in her moms name or whomever bought the property from the 3rd party.
  17. rhondak

    rhondak Well-Known Member

    That's what I thought.

    She (the ex) tried like hell to get him (my fiance) to do the new purchase in his name or co-sign all during the separation. (he's not that stupid).

    Not only that, they were trying to get him to pay part of the new house payment as part of the settlement (no go there either)

    Anyway, settlement, final decree and everything is done now - just trying to get the foreclosure off the CR now.

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