Loan Modification After Divorce

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Ann Joyce

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Post Posted: Sat Jan 16, 2010 11:25 am    Post subject: Loan Modification After Divorce
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After separation in July of 2007, my ex-husband and I put our house on the market. Our divorce was final in October of 2007. After 2 years on the market and going through 3 different realtors, it was evident we would not be able to sell the house. Because neither of us could afford to pay half the mortgage on our current home and rent elsewhere, we were forced to live together. In May of 2009, my ex stopped paying me half of the mortgage. At that time, I began the long and arduous process of obtaining a loan modification. My ex moved out of the house in August of 2009. FINALLY, I was approved for a trial period loan modification. As of January 1, 2010, my trial period was successfully completed. My modification will not become permanent, however, unless/until my ex signs off on a quit claim deed. He has up to this point refused to do so. He believes he should be entitled to the profits (if there are any, who knows) at the time I sell the home. I don't plan to do that until our daughter graduates from high school - in 5 years. The current value of our home is less than what is owed. The bank has stated they will start the foreclosure process in early February. If the modification is approved permanently, our credit is restored, I can keep the house for our kids, and my ex gets to walk away from the unpaid debt. HELP! How can I convince him? Is is possible to try to short sell the house at this point? I don't want to but I guess it's better than foreclosure.
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Post Posted: Mon Jan 18, 2010 3:41 am    Post subject:
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You've mentioned that the current value of the property is lower than what you owe on the property. In that case, if you sell off the property now, you will not be able to receive any profit. You should inform your ex about this fact and convince him to sign the deed. Alternatively, you can sign an agreement with your ex that when you sell off the property and receive any profits, you would share it with him. This may convince him to sign the property deed in your favor and you would be able to save the property.
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