Mobile Home Owner Financed, Now Purchasers Divorcing

[Sara Oubre]

Hello,

I have a mobile home in Texas that we owner financed to a husband/wife in April of 2011. Thus, we hold the note, and the title etc. are in their names jointly.

I received a message today from the wife asking "How to take her name off of the title, because they are divorcing and he wants to remain in the house".

I tried to research on here to gather a more informed response, and have also contacted my lawyer as well. I was wondering if anyone has any experience with owner financed properties, and divorce, and how to best handle this situation.

Thank you greatly!

[Ken Rishel]

Bill gave good advice. The divorce is between her and the court. The debt is still hers. Why give up a signer?

Plus, as Bill alluded to, you are creating a new transaction if you rewrite the loan, thus subjecting the transaction to all current laws and regulations. Even though the mandate on Ability to Repay doesn't go into effect until January, it may be much harder to defend a new loan in court than it would be an older one if the husband stops performing because he is spending your money drinking and/or chasing women.