Posted on: 02nd Aug, 2008 01:47 pm
I have a friend who is going through a divorce right now and needs some guidance on protecting her credit. Her and her spouse have been separated but have been still paying on the mortgage because they cannot sell for the cost of the home. Her husband has decided that he no longer wants to pay for the house and he says he doesn't care if it forecloses and affects his credit. My friend does not make enough money from her job to pay on the home as her husband was the primary source of income. She feels trapped and needs to protect her credit for the future because the foreclosure is a big deal to her. Is there anything she can do?
unfortunately it doesn't sound like there can be a refinance. has your friend talked to the lender letting them know of the divorce & the likelihood of a foreclosure situation? the lender may be willing to modify the loan because of hardship.
there is always the option of selling. if there is no equity in the home a short sale situation could be the answer. this would have to be approved by the lender. has your friend contacted someone experienced in distress sales?
there are many questions to be answered here...perhaps the first two concerning the loan itself are
1) was this loan started at a fixed rate & then converted to an adjustable rate?
2) has the payment reset recently or is it expected to reset soon?
there is always the option of selling. if there is no equity in the home a short sale situation could be the answer. this would have to be approved by the lender. has your friend contacted someone experienced in distress sales?
there are many questions to be answered here...perhaps the first two concerning the loan itself are
1) was this loan started at a fixed rate & then converted to an adjustable rate?
2) has the payment reset recently or is it expected to reset soon?