That is a difficult situation. While divorce protects you in some sense as far as the obligations being assigned to either party, it does not protect your credit rating.
For example: If you were to apply for a new loan for yourself after divorce, your new lender would see the derogatory information on your credit. For some lenders, you could prove that the delinquent payments were not incurred by yourself and the payments were not your responsibility as per the divorce decree document.
Some lenders may be able to work with you with the proof of the copy of your divorce decree. However, in this now FICO driven industry, it may be a little more difficult than in the past.
As for your obligation on the prior joint home loan, you must be aware that your divorce decree DOES NOT releive you completely of that obligation. The divorce decree does not protect you against harrassment from the mortgage lender to obtain repayment from you. You are still considered a joint borrower on the note and deed of trust.
When I filed for divorce, I wrote into the decree that my spouse was obligated to refinance the mortgages into his name within 6 months. If there were any difficulties, I could have gone to the judge to push the issue. Thankfully, he wasn't late on his mortgage payments up until the time he refinanced the mortgages.
Unfortunately he was late on several other joint obligations that were assigned as his responsibility in the divorce. I received multiple harrassing phone calls from creditors and assigned collectors. Being newly employed with no child support or alimony income yet forthcoming, I had no choice but to file for Bankruptcy protection.
There is nothing that you can do to help your credit rating since the mortgages were opened in your name as well. The best thing you can do now is go forward and seek the advice of your divorce attorney. Perhaps with his assistance you can have an order placed for him to refinance immediately into his own name (if he will qualify). I've heart that the Ditech company works with borrowers who have delinquent payments. Until your joint mortgages are paid in full, you will not be completely off the hook as far as the current mortgage lenders are concerned.
Good Luck to you!
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Submitted 658 days ago...
Ex-husband behind on house payments, title is in both our names
I divorced two years ago and in the divorce it was decided to let my ex have the house. The divorce decree clearly states that I have no financial obligations to the house. My ex is currently behind on house payments, has a history of paying the house payments late, and now my credit score is taking a nose-dive. What can I do? I've tried to get him to get a loan of assumption and he always says he's in the process of doing it. I need this house out of my name. Any suggestions?
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