Posted on: 22nd Sep, 2009 02:47 pm
hi,
i separated a year and a half ago and divorced last september. i signed a quit claim deed and in the divorce decree my ex had until july of this year to refinance. i had bought my own home before i moved out of the shared marital home. i wanted to refinance my home at a lower interest rate several months ago and found out that my ex was behind on the mortgage and had been for quite some time. this affected my credit in a negative way and i was unable to refi. he has applied for a loan modification at a lower interest rate, 2% lower than my current rate, and will get it because he has been in "trouble". this seems very unfair. in addition, he says that i need to sign off on the modification, that he is not able to refi until he gets his loan out of arrears. i am worried that if i sign anything i will be negating the divorce decree, which says he is solely responsible, and the quit claim. if i don't sign he may eventually be foreclosed on and this will hurt my credit more. please advise.
i separated a year and a half ago and divorced last september. i signed a quit claim deed and in the divorce decree my ex had until july of this year to refinance. i had bought my own home before i moved out of the shared marital home. i wanted to refinance my home at a lower interest rate several months ago and found out that my ex was behind on the mortgage and had been for quite some time. this affected my credit in a negative way and i was unable to refi. he has applied for a loan modification at a lower interest rate, 2% lower than my current rate, and will get it because he has been in "trouble". this seems very unfair. in addition, he says that i need to sign off on the modification, that he is not able to refi until he gets his loan out of arrears. i am worried that if i sign anything i will be negating the divorce decree, which says he is solely responsible, and the quit claim. if i don't sign he may eventually be foreclosed on and this will hurt my credit more. please advise.
Hi Angel,
It is true that as your ex-spouse is in a financial crisis, he/she will be receiving the loan modification. The interest rate would be lowered and the loan term would be increased so that your ex-spouse is able to pay off the loan.
As your ex-spouse has not refinanced the loan in his/her name, you are still responsible for the mortgage and thus, you would have to sign the loan modification papers along with him/her. However, before signing the papers, have a word with your divorce attorney. He would be the best person to guide you in this regard.
Thanks
It is true that as your ex-spouse is in a financial crisis, he/she will be receiving the loan modification. The interest rate would be lowered and the loan term would be increased so that your ex-spouse is able to pay off the loan.
As your ex-spouse has not refinanced the loan in his/her name, you are still responsible for the mortgage and thus, you would have to sign the loan modification papers along with him/her. However, before signing the papers, have a word with your divorce attorney. He would be the best person to guide you in this regard.
Thanks
it seems that your Ex is not in a position to refinance the mortgage alone. you discuss it with your attorney. you have already signed a quit claim deed in his name. so you are not co owner of house now.
Also you speak with old mortgage lender & tell them facts. now your Ex is answerwbale for house.
Also you speak with old mortgage lender & tell them facts. now your Ex is answerwbale for house.