{"id":5908,"date":"2024-08-07T07:35:31","date_gmt":"2024-08-07T11:35:31","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=5908"},"modified":"2024-08-07T07:35:34","modified_gmt":"2024-08-07T11:35:34","slug":"troubleshooting-after-divorce-my-name-is-still-on-my-exs-mortgage","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/troubleshooting-after-divorce-my-name-is-still-on-my-exs-mortgage\/","title":{"rendered":"Troubleshooting After Divorce: My Name Is Still on My Ex’s Mortgage."},"content":{"rendered":"\n
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Maybe your ex got your former home through your divorce. And maybe you thought it made sense to let your ex keep the loan \u2014 after all, the interest rate on it is great! And those are your kids living in the home\u2026 why make life harder for them by complicating the status of the mortgage?<\/p>\n\n\n\n

So you wanted to be fair and kind, for the sake of the kids.<\/p>\n\n\n\n

File it in the \u201cno good deed goes unpunished\u201d drawer, because now you need a home where the kids can visit you, and you can\u2019t get the mortgage loan you\u2019re applying for. Or you\u2019d like to start a business, but can\u2019t get startup financing. And that impacts your ability to support your kids.<\/p>\n\n\n\n

Every time a company pulls a credit report \u2014 because you need to buy a vehicle, get a credit card, you name it \u2014 your ex\u2019s mortgage debt appears on your profile and creditors want explanations. And they say your former home\u2019s mortgage is keeping your debt-to-income ratio high.<\/p>\n\n\n\n\n\n\n\n

Co-Borrowers Share Loan Repayment Responsibility\u2014Even After Separation or Divorce.<\/h2>\n\n\n\n

When a couple buys a home as co-borrowing mortgage holders, both spouses will remain responsible for the loan as long as it exists. Even after separation or divorce of the parties.<\/p>\n\n\n\n

If one of them receives the home through the divorce settlement, that spouse will become the sole owner. But presumably, both people signed the promissory note for the home loan. And as long as both names exist on the note, the two people are jointly and severally obliged to repay the lender. If you are in this position and your ex is supposed to repay some or all of what\u2019s due monthly, but misses a payment, your credit could take a hit, too.  <\/p>\n\n\n\n

No wonder most couples refinance, so that the one who keeps the home becomes solely responsible for the new mortgage. The prior loan, which belonged to both people, gets paid off in the process.<\/p>\n\n\n\n

Very often, refinancing is a condition in the separation agreement or the divorce court\u2019s order. The controlling document might say the transfer of the home to just one of the two co-owners is contingent on a loan release and refinancing.<\/p>\n\n\n\n

Your divorce papers might also contain an indemnity clause, shielding you from any potential missteps by your ex. Check. And if the lender won\u2019t release you, ask your divorce lawyer for assistance.<\/p>\n\n\n\n

Workable Refinancing Options Exist.<\/h2>\n\n\n\n

Often, a divorce settlement or court order says your formerly co-owned home has to be refinanced by a specific date. Methods to get it done include these:<\/p>\n\n\n\n