Posted on: 26th Mar, 2010 08:23 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!!!
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,
the only way you can get out of the mortgage is through a refinance. your husband will have to refinance the existing mortgage solely in his name to release you from the liability. novation is unlikely to work in your situation. selling the home is also not an option.
in this situation, i believe a deed in lieu of foreclosure seems to be a possible option. it's true you will lose the home, but you can at least avoid the foreclosure. it will affect your credit scores, but it will be less damaging than filing bankruptcy. in a deed in lieu, the lender is also not expected to come after you if there remains any deficiency from the sale of the home.
the only way you can get out of the mortgage is through a refinance. your husband will have to refinance the existing mortgage solely in his name to release you from the liability. novation is unlikely to work in your situation. selling the home is also not an option.
in this situation, i believe a deed in lieu of foreclosure seems to be a possible option. it's true you will lose the home, but you can at least avoid the foreclosure. it will affect your credit scores, but it will be less damaging than filing bankruptcy. in a deed in lieu, the lender is also not expected to come after you if there remains any deficiency from the sale of the home.