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Going through a divorce. Is there anything that I can put on the decree to have myself released from liability? My ex cannot qualify for a refi on his own.

by kristyn392 from Boise, Idaho. Apr 15th 2016 Reply


David Ortega (DavidOrtega)
#53 ranked lender in Minnesota - 230 contributions

Make sure it declares him as being 100% responsible for the mortgage. Then, make sure he makes payments from his bank account only (make sure your name is not on the bank statement). When you go to apply for a new mortgage, the underwriter will ask you to document that you are not responsible for the mortgage and be able to remove it from your debt ratio. In order to do this, you must provide your divorce decree that declares him as being responsible for the mortgage and you will need to provide copies of the cancelled checks or bank statements, showing him paying the mortgage. You will probably need to provide 6-12 months of cancelled checks to verify this.

Apr 15th 2016
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I do work with a lot of clients in your situation and we can work through this. Please give me a call this evening or over the weekend and we can get things taken care of for you!!

Apr 15th 2016
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Lorne Harvey (lorneharvey)
#80 ranked lender in Washington - 431 contributions

Until he is able to refinance, your name will still be on the loan, however David pinned it down for you. Try and be sure the X will assist with providing documentation that he has made the last 12 months payments from a bank account that your name is not on.

Apr 16th 2016
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,240 contributions

Good advice previously, just make sure you monitor his payments. Contact the lender for your mortgage and let them know he is responsible but ask them to note the file for you to also be contacted if it is late until it is refinanced.

Apr 16th 2016
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

No.. Your liability will be there until the loan is paid off.. Understand that when you originated the loan, you signed stating you would be responsible until the loan is paid in full.. A divorce might give you a way to go after him if he goes into default, but it will not release YOUR liability of the contractual obligation you have with the lender. When you go to apply for a mortgage on your own, the lender will look at the payment history of the outstanding loan.. in order for the lender to omit the housing payment from being included in your ratios, you will need to provide 12 canceled checks/bank statements from your ex showing that HE has made the payments on his own.. (this is why the account cannot have YOUR name on it).. If the payments have been made on time, and you can prove that he's paying, then the lender will omit the payment from your debt to income ratios.. however, if it's not being paid on time, or the payments are coming from an account that has your name on it, then the payment cannot be ignored.. Also, if he goes into default and eventually gets foreclosed on.. it will show on your credit and could prevent you from obtaining financing in the future until you have met the minimum mandatory waiting period, which can typically be from 3 to 7 years. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Apr 18th 2016
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