Advice on how to reduce mortgage payments when divorced

My husband is divorced and his former wife's name is still on the home. How can I reduce the payments?

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Bill's Answer: Bills.com Resident Expert

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 provided links below that will give you more information about divorce law and help you find an experienced attorney to represent you.

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

Best,

Bill

Bills.com

Comments (1)


Shyloh J.
Fairfax, VA  |  March 30, 2011
I would say that needs to be taken up with the bank and have her name taken off the mortgage. I know how you feel though, I've been trying to find an injury lawyer and the legal system can be a time consuming pain but, it's better to do it that way.
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