Divorce...mortgages...worst case scenario

[morecowbell]

What is the name of your state? Massachusetts

I am in the midst of a divorce, initiated by my wife. We currently own a townhouse in which she resides with our daughter. I moved out about 7 months ago, but my name is still on the deed and the two mortgages along with my wife.

My wife has now realized that she's placed herself in an untenable financial situation vis-a-vis the house payments. Right now the residence is basically either completely leveraged by the two mortgages or perhaps even slightly upside-down. The current market in our area is very flat and we would likely not be able to sell the place for enough money to cover the two outstanding mortgage balances, let alone closing costs, broker fees, etc.

She would like to stay in the place for another year or two until her swell new boyfriend is ready for her to move in with him. But she is having trouble keeping up with the payments. I am providing all I can in terms of support (child support that is). I cannot provide more.

I have suggested to her that she tap into her retirement account to continue making the payments until she is ready to move in a year or two. She doesn't want to do that, but she just might have to "grow up" and do it anyway.

My concerns are twofold: One is that the first mortgage is an ARM and is due for adjustment in September. She can barely get by now, an increase (likely) in the 1st mortgage will make things worse. I am very worried that she will just "give up" and choose to default. She doesn't really care because she figures that the new guy will be buying a new house for her. But meanwhile my credit ends up getting wrecked because my name is on the mortgages too.

I know I can get my name off the deed easily enough. But what about the mortgages? Is there any way to remove my name from them (aside from refinancing, which is not looking viable based on our FICO's and the market value of the house and all that). If I can get my name off of the loans, and then she wants to default, that's fine by me. If I can't get my name off of those loans...what other options might I have?

Can anyone give me some advice on this? What a freaking mess!

 

[pojo2]

I know I can get my name off the deed easily enough. But what about the mortgages? Is there any way to remove my name from them (aside from refinancing, which is not looking viable based on our FICO's and the market value of the house and all that).

Well don't be stupid enough to get your name off the deed no matter what. You will have to refi the loans to get your name off unless the bank is willing to switch it to hers alone, never gonna' happen.


If I can't get my name off of those loans...what other options might I have?

Get an Agent and stick a for sell sign in the front yard!

Well before that how far into the divorce are you and do you have an Atty? If not get one and see to it she gets the house (NOT THE DEED/TITLE until you are sitting at closing on HER new refi)if she wants it but it must be immediately refied by her to relieve you of any and all responsibility. See the divorce Atty.

 

[CJanssen]

she has to sell. she can't afford the home now, so what is she going to do when the ARM kicks out of the fixed period into a fully adjustable period? she needs to be mature about the situation as opposed to holding onto the past. if this other new boyfriend is so awesome, why isn't he able to help her?

 

[Carol Ann Bush]

Just a Suggestion

Hi, I am new to this , but having recently sold my home in Pa. I was told removing your spouses name from a deed doesn't remove them from the mortgages. You and your ex. need to talk to your lending co. and manualiy have your name taking off the mortgage. You should be able to ask them for the name of the form. Additonal Your wife MIGHT be able to file a quik claim deed, to remove you from the deed. as I did,when I divorced.

Good luck

What is the name of your state? Massachusetts

I am in the midst of a divorce, initiated by my wife. We currently own a townhouse in which she resides with our daughter. I moved out about 7 months ago, but my name is still on the deed and the two mortgages along with my wife.

My wife has now realized that she's placed herself in an untenable financial situation vis-a-vis the house payments. Right now the residence is basically either completely leveraged by the two mortgages or perhaps even slightly upside-down. The current market in our area is very flat and we would likely not be able to sell the place for enough money to cover the two outstanding mortgage balances, let alone closing costs, broker fees, etc.

She would like to stay in the place for another year or two until her swell new boyfriend is ready for her to move in with him. But she is having trouble keeping up with the payments. I am providing all I can in terms of support (child support that is). I cannot provide more.

I have suggested to her that she tap into her retirement account to continue making the payments until she is ready to move in a year or two. She doesn't want to do that, but she just might have to "grow up" and do it anyway.

My concerns are twofold: One is that the first mortgage is an ARM and is due for adjustment in September. She can barely get by now, an increase (likely) in the 1st mortgage will make things worse. I am very worried that she will just "give up" and choose to default. She doesn't really care because she figures that the new guy will be buying a new house for her. But meanwhile my credit ends up getting wrecked because my name is on the mortgages too.

I know I can get my name off the deed easily enough. But what about the mortgages? Is there any way to remove my name from them (aside from refinancing, which is not looking viable based on our FICO's and the market value of the house and all that). If I can get my name off of the loans, and then she wants to default, that's fine by me. If I can't get my name off of those loans...what other options might I have?

Can anyone give me some advice on this? What a freaking mess!

 

[moburkes]

CarolAnn, this post is 2 weeks old. Please let it die a peaceful death.

 

[Carrie&Brian]

I would suggest that you talk to your divorce attorney about your concerns. When my ex husband and I parted ways, we included these issues (house, car) in the divorce decree.....

Do not allow your ex spouse to continue to live in a property post-divorce that has your name attached to it on the mortgage- if she doesn't make the payments, it will be on you to make them.

If she decides she wants the house to be hers, post-divorce, she will need to get a mortgage in her name (or w/ a cosigner or some other person's name- boyfriend?). It would be prudent that your attorney sets deadlines related to this happening....

If she cannot afford to refinance the home and make the payments herself, the property should go up for sale. Yes, you're both going to likely lose money here. But better to just be done with it and move on.