Advice on how to reduce mortgage payments when divorced - The Bills.com Blog

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Advice on how to reduce mortgage payments when divorced

Question: My husband is divorced and his former wife's name is still on the home, she was ordered to sign a quick claim deed in the divorce agreement, but refuses. Her name is also on the loan, so if my husband should default she is responsible for the loan. My husband had to file bankruptcy a few years ago and the house payment is large, he is also unemployed rightnow. I work, but my check is not enough to make a house payment and pay bills. If we could get our house payment lowered it would be a blessing. What can we do? We have only been married one year this past November 24.

Answer: I am sorry to hear you're having a difficult time financially. The short answer is that you will likely have to seek legal counsel from an attorney in your area regarding enforcement of the quick claim deed as stated in the divorce agreement. It is highly likely that you will have to pursue this account through a legal process, to force your husband's ex-wife to confirm with the agreement and sign the claim deed. The only way you can reduce your payments is by way of a refinance. You state that your husband previously filed for bankruptcy and is currently un-employed. Given the circumstance, getting a better rate

will be difficult proposition. If you are successful in getting his ex-wife to sign the claim deed, then you might try to refinance by including your name as a co-applicant so that the lenders will consider your credit in deciding on the loan. As I do not have sufficient information on your current credit situation, I am unable to comment on the chances of a successful refinance even if you were to list yourself as a co-applicant.

In the event that no agreement is reached and neither party is able to retain the home then the home may be sold. Doing so will extinguish the joint debt and the equity (if any) will be divided between the two parties. Obviously, this is not always the ideal solution. Often the parties own a home that has a sufficiently reduced mortgage payment, which makes that acquisition of a similar property with the same affordable

monthly payment unlikely. Additionally, as with any sale, the asset or, in the case of a house, the property must be made saleable through improvements and repairs. Such repairs may often be cost prohibitive.

I have provided some links below that will give you more information about divorce law and help you find a qualified attorney to represent you.

http://family-law.lawyers.com/divorce/

http://www.attorneyfind.com/law-area.asp?CatID=7

http://www.attorneylocate.com/area.asp?catid=25

I hope the information provided helps you Find. Learn. Save.

Best,
Bill
www.bills.com

Also, make sure to get a free financial health check-up with Bills IQ!

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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!

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