Good morning BP!
My wife was married before, and she left him with the house and the mortgage that they had on it. The divorce decree does not require him to refinance to get her name off of it, but now that he's late on his mortgage payments, its affecting her credit score negatively. Is there a way to solve this that does not involve thousands of dollar in lawyer's fees? Do we have to sue him for it? This home is in Texas, and the ex- is not very cooperative.
If she's on the loan she can talk to the lender. Has she done this yet?
Also, was there a titled ownership change?
Thanks for the reply. She is on the loan, but the lender would not willingly remove her without the property being refinanced, in my understanding.
For ownership, at the time of the divorce, she signed a quit claim, so she is not on the deed. Here's something interesting though-now if you go to the county tax assessor's site, you can find that the property is no longer in his name either. Some investment group purchased it subject to the existing lien I think. How does that change things? Can she go to the lender and report that and ask them to call the loan due in full?
Yes, she can ask but will result in a foreclosure most likely. Without being on title, she can't force a partition sale. I see this in short sales, without the sub2, I believe she's unfortunately stuck. Another example of the issues with doing a sub2 with some yahoo off the street.
I know it's not what you want to hear, but it's time to talk to a lawyer. Calling the loan due won't help her if she is still responsible for the mortgage.
Yeah, of course the foreclosure would be FAR worse than a 30 days late on her credit report.
Certainly get in touch with the new owner/investor.
If I were the buyer on a sub2, I would be very interested in your wife's information: late payments, potential due on sale, potential lawyers. They should be very cooperative.
At least find out the details of the transaction. There may be a balloon in the near future.
Since she's on the note, she is responsible for the payment whether he pays it or not. Chances are there's nothing you can do.
Tough spot, but as others have said, she's basically stuck on it.
Talk to a lawyer. At least in Colorado you can get things like that clarified with the Court.
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