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 propheticone
Joined: 04 Nov 2009
Posts: 2
1.67 Dollars($)
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 Posted: Wed Nov 04, 2009 12:58 pm Post subject: Another divorce and mortgage question |
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I am asking in regard to a situation that is not mine so i will do my best to explain whats happened.
Man and woman own house
man and woman get married
rack up some debt almost all is the mans debt
they get divorced
at divorce he is responsible for his debt, he is ordered to take her off the mortgage of house and assume all responsibility.
she moves out, he occupies house.
he goes down financial tubes, late mortgage payments, tons of debt all that stuff. house may be forclosed or short saled. I do not know the differences of these. i believe her name is still on mortgage. is she pretty much screwed at this point? She was trusting of this guy and i think she is pretty much screwed. she is upset because the court ordered her off, but from reading here that holds nothing in the agreement between the lender and them.
What can she do? anything?
i believe she may have been subpoenaed today as well probably in regard to the enormous debt owed on the house |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7405
Location: bloomfield, ct
62.63 Dollars($)
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| Posted: Wed Nov 04, 2009 1:08 pm Post subject: |
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if "he" was in that severe a debt crisis, it would have become well nigh impossible for him to refinance that mortgage to remove her name. yes, lenders don't necessarily abide by what courts say, but the lender needs to watch out for its investment also, so if he was ineligible for a refinance, the lender cannot do it simply because of a divorce decree.
the resolution to this isn't going to be pretty, obviously. i don't think i can give you any more favorable news to pass along to your friend.
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George M. Akerley
Loan Consultant
860-221-5044 |
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propheticone
Joined: 04 Nov 2009
Posts: 2
1.67 Dollars($)
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| Posted: Wed Nov 04, 2009 1:14 pm Post subject: |
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| so she pretty much has no options in regards of getting her name off and being released from the mortgage? refinance is probably out and i do not understand novation but it sounds like the lender would be unwilling to do that as well because even though she doesnt make a lot of money, they would be able to recover more money from two people than just one that they know does not pay alot or on time? I understand the position of the lender in the situation, so she pretty much has to ride it out see how the short sale/forclosure thing works out have her credit dragged through the mud and possibly recoup losses through the legal process? |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7405
Location: bloomfield, ct
62.63 Dollars($)
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| Posted: Wed Nov 04, 2009 1:17 pm Post subject: |
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i think you've capsulized it. i can't imagine novation being much of a tool for anyone in these times.
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George M. Akerley
Loan Consultant
860-221-5044 |
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