Posted on: 30th Mar, 2009 02:09 pm
when getting divorced, and the ex is ordered by the divorce decree to refinance the home, i understand that signing a quit claim deed only transfers my interests in the home. what i need to know is this: neither of us lives in the home (we both live out of state). the ex did not refinance as ordered. obtaining an attorney in the state where the house is, is not an option. if after contacting the lender to request my name be removed from the mortgage, they deny the request, can i just tell the lender to go ahead and forclose on the property? or would bankruptcy be an option. if so, can i include the mortgage in the bankruptcy?
hi lshields,
if you let the lender foreclose the property, then your credit will be badly ruined. it will get lowered by 250 points. moreover, you'll be liable to pay off the deficient amount. as far as bankruptcy is concerned, it should be your last option. if your ex cannot refinance the property, you should ask him/her to speak to the lender about novation and transfer the mortgage.
if the lender does not agree to a novation, then you can sell off the property through a deed in lieu. though your credit will get ruined by 250 points, you'll not be liable for the deficient amount.
thanks
if you let the lender foreclose the property, then your credit will be badly ruined. it will get lowered by 250 points. moreover, you'll be liable to pay off the deficient amount. as far as bankruptcy is concerned, it should be your last option. if your ex cannot refinance the property, you should ask him/her to speak to the lender about novation and transfer the mortgage.
if the lender does not agree to a novation, then you can sell off the property through a deed in lieu. though your credit will get ruined by 250 points, you'll not be liable for the deficient amount.
thanks
Thank you for the advice. The ex refused to refinance (probably couldn't anyway). During divorce I had to quit claim the deed to him. Can I contact lender and ask for novation or can only ex do it? My credit is already about as bad as it can get. Can the mortgage be included if I file bankruptcy?
Welcome lshields,
Your ex can ask the lender for a novation. But you should remember that lenders prefer refinance over novation. Yes, if you file bankruptcy, you can include the mortgage as it is still in your name.
Your ex can ask the lender for a novation. But you should remember that lenders prefer refinance over novation. Yes, if you file bankruptcy, you can include the mortgage as it is still in your name.