Divorce question about joint property

[renegaderidgefarm]

Like someone said, it depends on the state!!!

I'm been here and done that!! In South Carolina, the home has be refinanced! I allowed my ex to keep the home without fighting over it and he was supposed to pay me a lump sum of money when he refinanced but guess what! After the divorce was FINAL- While waiting on him to refinance - he stopped making the payments and the house was foreclosed on!! My credit is ruin and there is nothing I can do.

 

[seismic wonder2]

They have to file notice with the credit reporting companies to separate credit reports ASAP They can even do that NOW.

 

[TwoChicks]

Quote:
Yeah, we've discovered SC is a HORRIBLE state to divorce in if it's contested.

She's getting the paid off property with no mortgages, so I'm assuming a quit claim would be done there on his part as grantor. The two properties he gets to keep are, of course, mortgaged in both their names. So ... she could quit claim as the grantor. Now, does he HAVE to refinance? Or can he just continue making the payments with her name still on the mortgage?

 

[TwoChicks]

Quote:
That's a good point. I'll see if he's done that yet.

 

[scbatz33]

He shouldn't HAVE to refinance if she isn't pushing it. However, leaving her on could lead to property disputes later down the road. She could claim all sorts of things about payments and taxes if he doesn't get her off the deeds. Plus, she could always use the property as collateral for other loans that he doesn't know about until he's stuck with the bill. As long as she is still on the title for those properties, he risks her using them in a way that would be detrimental to his finances.

 

[crazy cat lady]

When my daughter divorced her first husband, I know he had to refinance their townhome in order to have her name takenoff the mortgage. I think she also had to sign a quit claim. As for charge cards, she had to close those accounts and just get CC for herself. He was responsible for paying off the loans. They had to sell their pizza restaurant and he has to pay her half of the moneys for that sale.

 

[Livinzoo]

My ex husband could not be on the loan due to bad credit. The realtor convinced me to put hisname on the house in case something happened to me. When we got divorced he quit claimed the house.

 

[sfw2]

IMO, the lawyer who handled the divorce should be answering these questions for your friend. As I understand it (and I'm NOT a lawyer, but I work in the mortgage industry), unless the settlement requires him to refinance, your friend can just continue making payments on the existing loan. If I were his ex, I would want my name taken off the note. As far as the student loan is concerned, if the ex can't qualify to refinance it just in her name, your friend should check regularly to make sure payments are being made. The lender will continue to hold him liable for the balance.