Posted on: 01st Aug, 2008 04:24 pm
my current fiance and his ex wife were divorced may 2007. in their decree (sp) they agreed the house would be placed on market. after 8 months or so, and no offers, ex wife would like to refinance to keep the house. both verbally aggreed, and the house was taken off the market in preperations.
roughly 3 weeks ago, while reviewing his credit report, my fiance and i noticed she had not paid the mortgage since march. agreement was, each paid half, she would send in payment (bad idea!) now over $5,000 behind (adding to their already poor credit), she continues to attempt refinance. her newest scheme is to take out another loan, catch back up on payments, and pay my fiance "his part"(?) to do this, he "needs to quit claim deed the house to her".
i have a bad feeling about this situation. i feel foreclosure or worse is coming! fiance is meeting with his lawyer on monday do discuss the situation from a legal standpoint.
can anyone offer any advice on the situation to prevent his credit from falling further down the tubes?? we plan on building a house in the next 12 months, so this is kinda important!
(if it makes a difference, the mortgage is with wells fargo.)
roughly 3 weeks ago, while reviewing his credit report, my fiance and i noticed she had not paid the mortgage since march. agreement was, each paid half, she would send in payment (bad idea!) now over $5,000 behind (adding to their already poor credit), she continues to attempt refinance. her newest scheme is to take out another loan, catch back up on payments, and pay my fiance "his part"(?) to do this, he "needs to quit claim deed the house to her".
i have a bad feeling about this situation. i feel foreclosure or worse is coming! fiance is meeting with his lawyer on monday do discuss the situation from a legal standpoint.
can anyone offer any advice on the situation to prevent his credit from falling further down the tubes?? we plan on building a house in the next 12 months, so this is kinda important!
(if it makes a difference, the mortgage is with wells fargo.)
Hi aj64642002.
Welcome to the forum.
I appreciate that your fiancé is meeting with his lawyer to discuss the situation from a legal standpoint.
The best thing is if she can refinance the mortgage and your fiancé can quitclaim the property to her. But if she cannot refinance the mortgage or if your fiancé has any doubts that she might not refinance the mortgage then your fiancé can file Partition Lawsuit and sale the property. After selling the property the sale proceeds will be distributed among them. but if they have any outstanding balance of the loan then both of then will liable to pay.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
I appreciate that your fiancé is meeting with his lawyer to discuss the situation from a legal standpoint.
The best thing is if she can refinance the mortgage and your fiancé can quitclaim the property to her. But if she cannot refinance the mortgage or if your fiancé has any doubts that she might not refinance the mortgage then your fiancé can file Partition Lawsuit and sale the property. After selling the property the sale proceeds will be distributed among them. but if they have any outstanding balance of the loan then both of then will liable to pay.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Thank you Larry for your quick reply!
From reading, a Partition Lawsuit sounds like a good option. (To compound the situation, there are children involved in which she has partial(?) custody.)
It is my understanding that there was recently aid given to lenders to help borrowers who face forclosure. I am VERY new to this. Can you or someone please explain (in dummy terms) how a borrower can qualify using the above situation as an example.
Thanks again in advance!
From reading, a Partition Lawsuit sounds like a good option. (To compound the situation, there are children involved in which she has partial(?) custody.)
It is my understanding that there was recently aid given to lenders to help borrowers who face forclosure. I am VERY new to this. Can you or someone please explain (in dummy terms) how a borrower can qualify using the above situation as an example.
Thanks again in advance!
Hi Aj,
Welcome to our forums.
It's better to not give a quitclaim first and then allow the ex-wife to refinance. But i don't think the lender would agree to a refinance now because they're already $5000 behind? how many payments have they missed?
Looks like your fiance and his ex-wife doesn't mind losing the home. So, why don't you talk to the lender and hear what he has to say in terms off paying off the loan. Your fiance isn't willing to stay anymore, so the lender may agree to a short sale or deed-in-lieu. Check out for some of these options from the Loss Mitigation page.
Good luck
Welcome to our forums.
It's better to not give a quitclaim first and then allow the ex-wife to refinance. But i don't think the lender would agree to a refinance now because they're already $5000 behind? how many payments have they missed?
Looks like your fiance and his ex-wife doesn't mind losing the home. So, why don't you talk to the lender and hear what he has to say in terms off paying off the loan. Your fiance isn't willing to stay anymore, so the lender may agree to a short sale or deed-in-lieu. Check out for some of these options from the Loss Mitigation page.
Good luck
Thank you Caron! The link you posted was very helpful.
The ex-wife is 3 months behind. My fiance does indeed mind losing the house. He has been more than supportive in this whole ordeal. Only too trusting.
Today, I have learned that she has submitted a hardship letter due to a recent surgery (merely coincidental). The "loan modification" seems to best fit the situation. Though I question the chances of the combination of removing my Fiance's name from the loan, and recieving the Loan Modification?
Also today, Fiance met with his lawyer! He didnt go into too much detail, but did say that they would be changing the divorce decree to state that she is soley responsible for payment of the loan. Though not changing the situation with the lender, I "assume" this (and documents of "his" payment and previous decree) could positively impact his credit report concerning the recent events. BUT Please someone correct me if I am wrong!
The ex-wife is 3 months behind. My fiance does indeed mind losing the house. He has been more than supportive in this whole ordeal. Only too trusting.
Today, I have learned that she has submitted a hardship letter due to a recent surgery (merely coincidental). The "loan modification" seems to best fit the situation. Though I question the chances of the combination of removing my Fiance's name from the loan, and recieving the Loan Modification?
Also today, Fiance met with his lawyer! He didnt go into too much detail, but did say that they would be changing the divorce decree to state that she is soley responsible for payment of the loan. Though not changing the situation with the lender, I "assume" this (and documents of "his" payment and previous decree) could positively impact his credit report concerning the recent events. BUT Please someone correct me if I am wrong!
Hi Aj,
I'm afraid this won't work because when you remove someone from the loan, it can be done in most cases by a refinance. A loan modification is simply changing the loan terms and conditions. It doesn't remove a co-borrower from the loan. So, if your fiance wants to keep the home, he can do so if the ex-wife is willing to leave the home. But chances are that the ex-wife may stop paying for the modified loan (if you are allowed for loan modification) and then fiance will be left behind for the entire payment.
Thanks
I'm afraid this won't work because when you remove someone from the loan, it can be done in most cases by a refinance. A loan modification is simply changing the loan terms and conditions. It doesn't remove a co-borrower from the loan. So, if your fiance wants to keep the home, he can do so if the ex-wife is willing to leave the home. But chances are that the ex-wife may stop paying for the modified loan (if you are allowed for loan modification) and then fiance will be left behind for the entire payment.
Thanks
hOW CAN i EXPLAIN IN A LETTER THAT i WAS LATE DUE TO ME GOING THRU A DIVORCE
Hi pALMAR,
You can write a letter mentioning that you were facing financial hardship as you were going through divorce. If you want. you may attach the divorce decree as a proof regarding the same. I think this will convince the lender regarding the same.
You can write a letter mentioning that you were facing financial hardship as you were going through divorce. If you want. you may attach the divorce decree as a proof regarding the same. I think this will convince the lender regarding the same.
A simple letter is sufficient to advise a lender of the cause for delinquent payments. Of course, lenders will take notes every time that they call a borrower or a borrower calls the lender, indicating the reasons for late payments.
