help with mortgage

[hallory]

What is the name of your state? OH
i am recently divorced and my former husband and I are still settling our finances. We have a 1st and 2nd mortgage that is in danger of default. His father co-signed for the loan which was a consolidation of my ex's and my debts. They say they will attach an addendum to the mortgage and remove my name if I agree to pay the $7,000 for my portion of the debt. What is anaddendum and should I have the loan rewritten instead?

 

[amortgageman]

First question is whether everything is rolling along smoothly in the transition of divorce and settlement issues.

Is there any equity left in the home? If there is, how is this being shared?

My suggestion would be that the ex refinance the entire loan to fully remove any debt obligation or any claim that you may have. The problem with their suggestion is in the case of their default, the lenders will come after you instead. As long as your name is on the loan, you are still liable for the debt repayment, and the debt will still count against you when you attempt to qualify for any future loans.

A quit claim deed or "addendum" does not remove your financial obligation to the mortgage. All that will accomplish is removing your name from title.