Divorce assett questions and Credit scores

[DrPizza]

Originally posted by: kranky

Originally posted by: DigitalCancer

Originally posted by: princess ida
If it isn't on the divorce papers, then you still owe both loans, and you are completely responsible for the total amount of both of them. Your name is on the loans, you are responsible.

Sometimes a divorce lawyer is a good idea.

It's on the papers that she's taking over the house/car. It's all we owe on besides normal bills we each had. ^_^

It might be worth a visit to a lawyer to find out exactly what you might be liable for in case she defaults on the loans. Will those divorce papers get you off the hook? Does a creditor have to leave you alone because of those papers? Better to know now just in case. You don't want to see your credit trashed suddenly and have to fix it later.

The more I think about this, the more I question whether those divorce papers will protect you if she defaults. If I'm the bank, and Joe Deadbeat comes to me for a loan, I would turn him down. But if his wife with a great credit record co-signs the loan, I feel safer and make the loan. If they divorce later and their divorce papers say Joe is now solely responsible for the loan, why should I get screwed? I made a deal with both of them and that's why I even made the loan in the first place. I don't see how one person can be removed from the loan just because the two of them agreed that one of them will be responsible, without the bank's consent.

My current tennant rents for that exact reason - divorce, her ex-husband got the house, husband defaulted, bank took it, and her name was on the loan. She's tried, but she can't get a loan to purchase a new home because of that.

 

[DigitalCancer]

Sorry for the absence in my own thread. ^_^

So say she files for Bankruptcy the debt gets handed over to me right? How soon after that could I file Bankruptcy myself, because I would definitely have to do that. If that did happen, how big of a hit do you think my credit score would take? Talking about $90,000 to file on and right now I've gotta 710.

 

[kranky]

You should talk with a lawyer about your questions. The stakes are too high to do otherwise. You have to protect yourself and know exactly what your options are.

 

[DigitalCancer]

Originally posted by: kranky
You should talk with a lawyer about your questions. The stakes are too high to do otherwise. You have to protect yourself and know exactly what your options are.

Yea...i'm working my way there...just gotta get time. Just thought I'd come here for brief opinions.

 

[DigitalCancer]

Ok...so it's been a couple weeks now since my posting and I've gotten nowhere.

I called DiTech to refinance the house for the remaining balance $70,xxx, no additional loan. Well...they practically tell me that she can't afford it (too much income/debt ratio)...well how the hell is she paying it now??? If I refinanced for the same exact amount, wouldn't the payment essentially stay the same??? Stupid.

I tried to refinance the car through StateFarm and they said the car has depreciated too much. $15,3xx left on it, it's worth about $7500...nice!

So...how the hell am I supposed to get my name off of these (2) things?????

 

[JeffreyLebowski]

Originally posted by: DigitalCancer
Ok...so it's been a couple weeks now since my posting and I've gotten nowhere.

I called DiTech to refinance the house for the remaining balance $70,xxx, no additional loan. Well...they practically tell me that she can't afford it (too much income/debt ratio)...well how the hell is she paying it now??? If I refinanced for the same exact amount, wouldn't the payment essentially stay the same??? Stupid.

I tried to refinance the car through StateFarm and they said the car has depreciated too much. $15,3xx left on it, it's worth about $7500...nice!

So...how the hell am I supposed to get my name off of these (2) things?????

Unfortunate BBQ accident while her car was in the garage???

 

[EagleKeeper]

Originally posted by: DigitalCancer
Ok...so it's been a couple weeks now since my posting and I've gotten nowhere.

I called DiTech to refinance the house for the remaining balance $70,xxx, no additional loan. Well...they practically tell me that she can't afford it (too much income/debt ratio)...well how the hell is she paying it now??? If I refinanced for the same exact amount, wouldn't the payment essentially stay the same??? Stupid.

I tried to refinance the car through StateFarm and they said the car has depreciated too much. $15,3xx left on it, it's worth about $7500...nice!

So...how the hell am I supposed to get my name off of these (2) things?????

As you have discovered, you can not get your name off unless some-else takes on the responsibilities.

You have stated, that she does not have the financial resources; therefore you are the backup.

The divorce should should have specified how the handling of joint assests would be done.
When they are free & clear, it is one thing; when financed, then it is a different story.

You agreed to be responsible for the load when you signed it - that you got divorced does not remove you form that obligation.

Even if the vehicle was reposed or totaled, the upside value is still a shared responsibility.

As you have found out, you are screwed by not looking carefully at the whole picture.

 

[dullard]

Originally posted by: DigitalCancer
So...how the hell am I supposed to get my name off of these (2) things?????

Like said above, this REALLY should have been all decreed by the divorce papers. Thus, you'd have this all taken care of and you'd have the full backing of a judge's orders. But, I am assuming these details were omitted.

When I got a divorce, I had to dig hard to get enough cash to pay off the car in full, so that I could meet the judge's orders to sign over the title to her in the set 30 day window. Of course, the money I paid for that loan was subtracted from the assets that she got. It balanced out, we each got cars of equal value, I paid off the loan, and I kept the loan's amount worth of retirement savings. The key was that I actually went and paid off the loan. Do so yourself. As soon as possible. Be certain that you get something equal in return (if it isn't too late).

Same went with the house. For me, I kept the house. It was painful to refinance from a fantastic mortgage. I've paid about $150/month extra for 3 years now just to get her name off of it. But it was my legal duty as it was decreed in the divorce papers. I bet it is your ex's legal duty to refinance (or it really should have been). If she can't, she must sell.

Who has the legal right to the house and car? That is, have you signed quit claim deeds yet? Or is your name still on the titles?

 

[RaistlinZ]

Why would you agree to give her the house and car without putting her name on the loans?

 

[OCGuy]

You would drop to the 500's in a heartbeat the second the filing hits your report.


If you have the ability to refinance, do it. The new lender will want to see the divorce papers anyway.


I am a mortgage loan processor, and I love pouring over peoples divorce papers. Some of the crap in there is absolutely hilarious.

 

[T9D]

Hate to throw this out there too... but even if she some how qualified for the loan I highly doubt the home would even appraise out anymore. Housing prices have taken a huge hit in the whole country since last year. More is probably owed than the house is worth. No one will finance that.

I don't know how you're going to get out of this. In the end she's probably going to screw you on this. A lot of women just don't seem to take credit scores as serious as they should. Kind of have that nonchalant "whatever" attitudes.

 

[Beattie]

Few things...

First off, don't sign a quit claim. Doing that means you quit your claim on the house. That doesn't mean you don't owe the money. You will after that still owe the money but have no rights to the house or profit from it's sale.

Second, don't worry about your credit so much. Just worry about all this debt that's in your name. You need to get her to sell the house and the car ASAP. Even if it's at a loss. Better to owe a few thousand than tens of thousands.

Originally posted by: DigitalCancer
I will contact US Bank sometime this week to try the same, but?you wouldn?t think it to be this hard in order to get your name removed from a loan whenever you get a divorce, you shouldn?t be obligated for it any longer ya know?

hahahahahahaha

Originally posted by: DigitalCancer
Another question I have is if I do go for paying off all my CC?s (which is actually my plan at the moment) then?should I get rid of them or just cut them up and let them linger?

Just get rid of them. Pay them off, close the account, cut up the cards.

 

[alkemyst]

credit score is nothing without older tradelines.

However you want to spin it, signing loan documents with anyone else puts you equally on the hook. It's not 50/50 it's 100/100.

To her...if you can't afford the house...you will lose it eventually no matter how much you put into it.

 

[Beattie]

Originally posted by: v1001
Hate to throw this out there too... but even if she some how qualified for the loan I highly doubt the home would even appraise out anymore. Housing prices have taken a huge hit in the whole country since last year. More is probably owed than the house is worth. No one will finance that.

I don't know how you're going to get out of this. In the end she's probably going to screw you on this. A lot of women just don't seem to take credit scores as serious as they should. Kind of have that nonchalant "whatever" attitudes.

It's not a matter of not taking it seriously or whatever, she simply doesn't have the ability to pay it. Nor, apparently, the sense to sell it.

 

[DigitalCancer]

Ok...so I'm still having issues with this and realized the best route to take would be to try and MAKE her sell the house and car if possible.

The car can't be refi'd due to her owing $15.3 on it...and its worth about $9k now. ^_^ Sweet.

The house...they say she can't refi due to income/debt ratio.

I thought about going bankrupt if it would get my name off the car/mortgage, but...lawyer says that it wouldn't...it'd still show up on my credit so I don't really want to do that if its not going to help me any.

I just feel so...out of options on this besides selling it which is going to be hard to do. On another note...she would rather keep the house.