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csgpsmith · Jul 29, 2011, 06:15 AM

I have remove myself from the rights to the house including the deed. He agreed to remove me from the debt. He did not. Now he is going to foreclosure on the first mortgage which puts me in a bad situation. I have been making the 2nd payment and do not have a problem with that. My issue is the bank will not let me refinance the 2nd mortgage or take it over in my name only or anything else. The bank says I have no rights to the loan because I am not the principal owner and they do not look at the 2nd loan in a foreclosure. I called them saying I am willing to take on this debt and continue to pay you this money and they told me we have not had anyone call us wanting to do the right thing. My credit is going to be ruined because of him. The bank said --We're sorry this is just the way it is, when he goes down you go down with him. I have excellent credit with a credit score of 800. Now tell me me this is right! I am devastated. Does anyone have any ideas? This will stay on my credit for 7 years and I am 55 years old, I just don't have 7 years to try and build my credit back up, it's taken me 30 years to get where I am now. :(

excon · Jul 29, 2011, 06:33 AM

Originally Posted by csgpsmith

Does anyone have any ideas?

Hello c:

Only bad ones. You DON'T want to hear about the mistakes you made, because you made PLENTY of them... But, you DO have an option... It's an UGLY option, but it will save your credit... Make the first mortgage payment's for him, and sue him (for all the good it's going to do you). He's broke, right? But, if you ARE able to reverse the foreclosure, you can buy the house from him (cause you'll be making the ALL the payments anyway), and get him OUT of your business life.

excon

joypulv · Jul 29, 2011, 06:33 AM

You agreed to all this without any legal advice, apparently. Sympathy doesn't apply in business such as this, the 'right thing' all falls on him, not the bank or anyone else, and there is no such thing as just taking over payments on someone else's loan. Now your only option is to sue your ex, but you will probably lose. Why wasn't all of this part of the divorce agreement?

AK lawyer · Jul 29, 2011, 07:19 AM

Let me try to understand your problem:

You are not on the first morgage.
You did co-sign the second mortgage.
Your ex-husband is in default on the first and the second, and the first is being foreclosed.
The second mortgage is current, because you are making the payments.

How is this affecting your credit? The bank is losing it's security, but if you make all of the payments when due, this should not affect your credit rating.

csgpsmith · Jul 29, 2011, 07:19 AM

Thanks for the kind words. The terms of the loan will not allow my name to be removed from the loan. I have a court order to do so, however here in NC the Banks have the right to override even the court system. And the Banks said NO.

csgpsmith · Jul 29, 2011, 07:24 AM

I can't buy the house because it is in foreclosure and because I am his ex the Bank will not sell it to me. He can only sell it to a total stranger. Plus with the market the way it is he is upside down in the house. He still could not get enough to pay both mortgages off which is what he would have to do to sell it. Ok so I am really screwed--Great--Thanks---for the comments.

excon · Jul 29, 2011, 07:27 AM

Originally Posted by csgpsmith

The terms of the loan will not allow my name to be removed from the loan. I have a court order to do so, however here in NC the Banks have the right to override even the court system. And the Banks said NO.

Hello again, c:

The problem is that divorce lawyers do NOT understand how the banking system works.. They write in there orders that so and so IS responsible for such and such loan, and that's that...

But, it ISN'T that way at all, as you're finding out. By the way, YOUR court order doesn't ORDER the bank to DO anything... It just HOPES they will...

excon

excon · Jul 29, 2011, 07:31 AM

Originally Posted by csgpsmith

I can't buy the house because it is in forclosure and beacuse I am his ex the Bank will not sell it to me. He can only sell it to a total stranger.

Hello again, c:

Hmmm... Banks aren't stupid.. If YOU buy the house, they won't lose money... If they foreclose, they will. I don't know WHY they WOULDN'T want you to own it. I think you're mistaken. I've never heard of such a thing. If you have the money, the bank CAN'T refuse to sell you the house... Nope. They CAN'T.

excon

AK lawyer · Jul 29, 2011, 07:41 AM

Originally Posted by csgpsmith

... however here in NC the Banks have the right to override even the court system. And the Banks said NO.

It's not unique to NC. It's universal The fact is the bank had a contract (mortgage) with you and your husband. It was not a party to the divorce. Therefore it is not bound by the divorce decree.

Originally Posted by excon

...
The problem is that divorce lawyers do NOT understand how the banking system works.. They write in there orders that so and so IS responsible for such and such loan, and that's that...
...

Unless they're total idiots, of course they understand. They just are unsuccessful in explaining it to their clients sometimes.

Fr_Chuck · Jul 29, 2011, 06:07 PM

If you are willing to take over the loan? Take out a new personal loan, not related to the house and use that money to pay off the 2nd.

ScottGem · Jul 29, 2011, 06:52 PM

First, when posting a follow-up question or info, please use the Answer options at the bottom of the page rather than the Comments.

I'm still a little confused, are you on both mortgages or just the second? Are you on the deed for the property? As the property already been foreclosed or is it in the foreclosure process?

Yes, it is a general legal principle that creditors are not bound by divorce settlements. So the bank does not have to remove you.

So you get a 3rd party to make an offer on the house, then you buy it from them.