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What can I do when I remained on the mortgage in a divorce and signed a quit claim deed and ex is almost in foreclosure and my credit is being damaged, can a judge make my ex add my name back to deed until mortage is paid off

Posted on: 25th Aug, 2010 08:03 pm
i am going crazy. i divorced and due to irs liens from my ex attached to our home, i signed a quit claim deed and did not get released from the mortgage. so over the past 3 years my ex can't make timely payments and my credit is being ruined. he will not work with me. he will not refinance or assume the mortgage. i took him back to court to beg the judge to add my name back on the deed until my ex paid the mortgage, but the judge ruled in my ex's favor. i am going crazy to solve this problem. is there anything else i can do legally? what kind of lawyer could i see about this and could i sue my ex for ruining my credit? if so, how?
I am sure this is no consolation, but you have made a very common mistake of signing off on the title without simultaneously also releasing your obligation on the loan. I am still baffled why divorce attorneys have not figured this out and continue to put their clients in this horrible situation.

As you are now aware, a release can only be approved by the lender and will never be accomplished through a Quit Claim deed. By you signing the Quit Claim deed, you have given up ownership to the property. However, you will remain on the loan obligation until the loan is paid off. I see this scenario far too often and have addressed this very topic in my book, How To Save Your Home (Or At Least Save Your Ass-et so do not feel like you are alone!

One common resolution is to refinance the house. Unfortunately, the current financial crisis and loss of equity in the home has eliminated this as an option for most people. In addition, even if the economy improved, your ex-husbans financial mismanagement will most likely preclude him from qualifying for a refinance.

The sad news is you are currently at the mercy of your ex-husband and your credit may continue to be negatively impacted. If the property is ultimately foreclosed, you will also have the foreclosure on your credit.

The good news is some lenders recognize your scenario and may be willing to work with you to be removed from the loan. You should contact your lender directly to see if this option is available for you. In addition, if you can document that you were not responsible for the loan (for example, through the divorce decree), some lenders will overlook the derogatory reporting typically associated with late payments and foreclosures, assuming that is the only derogatory ding on your credit report.

You may want to consult with a bankruptcy attorney to see what protection you can put in place to shield you from a potential lawsuit for a deficiency judgment if the house is foreclosed upon. As for a lawsuit against your ex-husband, I am sure some attorney out there would be willing to take your case and take your money, but if your ex-husband is already struggling financially and does not have any money, I am not sure it would financially benefit you in the end.

As a disclaimer, I am not your attorney and am not officially offering you any legal advice. I recommend you consult with a licensed attorney in your jurisdiction to review your specific situation and legal options. But, I recommend you read my book To Save Your Home (Or At Least Save Your Ass- for additional information.

Lindsay

[Links deleted as per forum rules. Thanks.]
Posted on: 25th Aug, 2010 09:46 pm
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