credit after divorce

[Rachel T]

What is the name of your state? TX

I have been divorced for 4 years. My ex husband got the house since I knew that I would not be able to afford it on my own. My name is still on the mortgage and it is affecting my credit. I do have a letter from the court saying that I should be absolved from any action if he were to be delinquent in payments etc. (my name wont be removed from the note til he sells or refinances is what I was told) Now I am remarried and we are trying to rent a house til we can build up our nest egg to buy. What can I do to clean up the credit? Will the letter be enough? Will the mortgage company take me off the note with the letter? Help!!!

 

[Texas Pooh]

What is the issue with the credit? Is ex late on payments?

 

[Rachel T]

Yes, he has been late 5 times in the past year. That plus the fact that my credit report shows I am holding a mortgage is hurting my chances of getting a mortgage of my own with my new husband. I do have a Deed of Trust and a Deed to Secure Assumption. Can either of these help me in this situation? Can I put the lien into effect with the second when he is delinquent or only when he is in foreclosure? I need to get this cleaned up! Without this on my credit, getting a house would be so much easier.

 

[TigerD]

No, the mortgage company will not remove your from the loan based on that letter. Your only way out of this that I can see is to get a lawyer and go back to court to force something be done with the house -- either re-fi or sell.

DC

 

[Rachel T]

Can a judge force him to sell? What if he cannot refinance on his own?

 

[Texas Pooh]

It's unusual that the house remained a joint liability after the divorce, but that sounds like what happened. It also sounds like you may have the right to enforce your lien, but if he is only late - and then pays - that's not going to work (he'd have to default completely before you can bring an action).

Do you have any right to a share of the profits on sale? I'm trying to understand how you remain on the mortgage if you have no interest in the house. Without looking at the divorce decree and your other documents, it's difficult to understand exactly what's going on. But, if you remain on the original deed and the mortgage, you technically have an interest in the house, and could bring a partition action. Howevr, partition is a court proceeding and thus has some costs associated with it.

Its worth a call to your divorce lawyer to see what he thinks.

 

[Rachel T]

No, I don't have any rights to the profits when he sells the house. The Deed of Trust conveys the house to him and he paid out my half of the equity at the time of divorce.