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Is There A Solution to This Mess?

Posted on: 26th Mar, 2010 08:24 am
my husband and i have been separated for nearly 3 years and i'm finally taking the steps to file for divorce. my husband is living in the marital home and i'm living in a condo i purchased 2 years ago (he signed away all ownership rights to my condo when i executed the purchase).

my husband is currently hanging by a thread financially and can no longer make the mortgage payment on the marital home. in fact, he's in the process of filing personal and business bankruptcy after shutting down a small business that once generated over $1 million in gross sales. none of his personal or business debt is in my name, except for the mortgage on the marital home.

i can't afford to make the mortgage payments on the marital home and the condo. selling the house isn't likely since it's half-remodeled (some rooms don't even have dry wall!). on top of that, we now owe more on it than it's worth. i have good credit and want to keep it that way, but i'm beginning to see no way out of this mess.

can someone please give me suggestions for getting my name off of the deed and the mortgage? is novation an option? what about deed in lieu of foreclosure?

please help me!!!
Hi Tallblonde!

Welcome to forums!

You can transfer the property to your husband with the help of a quit claim deed. Thus, you won't remain an owner of the property any longer. However, your name would still remain on the mortgage docs. If your husband is not delinquent on the mortgage payments, then he may apply for a novation. But it would be the lender's discretion whether or not he would accept it.

You can apply for a deed in lieu of foreclosure. However, it would have a negative affect on your credit score. A deed in lieu of foreclosure will reduce your credit score by 250 points. If you are not concerned about your credit score, then deed in lieu is a good option for you.

Feel free to ask if you've further queries.

Sussane
Posted on: 27th Mar, 2010 12:13 am
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