The correct answer would be to deny the loan. As a mortgage originator, why would you risk the chance of putting your borrower right back into the same situation? Why are they behind? When the underwriter get’s an updated VOM it will kill the deal anyways. It’s called a “bail-out” situation. Do you need the loan that bad? Enough to put your company and your borrower into such a risky position?

Mr. Chicken,

If you can get a refi do it. You will save many dollars on interest and the interest on your mortgage is deductible.

pay by his credit card or ask him to borrow money from his friends.

Just curious, What does your separation agreement filed with your divorce decree say about division of property?

I swear no one ever reads questions around here.

You are not on the deed or the loan…but that doesn’t mean that you don’t have rights when it comes to selling the house. In some states you are kind of like on the deed but invisibly. It is called Dowers Rights. Other states are equal states, meaning that if you bought the house once you were married you have rights to it.

Now, I would definitely tell you to take the payment to or mail the payment yourself. Do not send it to your ex. If just one month he/the new girl decide not to send it in, your talking foreclosure. Although I doubt that your soon to be ex would want that on his credit report.

I doubt you could get the loan refi’d in your name if you don’t have good credit.

I would definitely sign something stating that you are allowed to live there until the BOTH of you decide to sell the house. But you have to both be in agreement.

As long as the loan has a lower interest rate than the credit card and you don’t use the credit card again it would be a good idea. This will both save you money with the lower interest rate and improve your credit rating because you have paid off your existing debt.

We use Citifinancial for this type of think a lot. Or once in a while a small local bank that will take various things as collateral. Good luck, that’s a tough one.

Since you are both on the deed, you both own the house. He only gets removed from the deed by quit claim or by the house being sold. Since you are both on the mortgage, you are both obligated to pay the debt on the house. He will remain obligated until you refinance the house.

If he has enough cash to pay you his half of the equity of the house (house is worth 300k but you owe only 200k he would pay you half of the remaining 100k) and that gives you enough of a new down payment on the new loan with your bad credit, then you can refinance and he can quit claim the house to you. Otherwise work on your credit until you are “mortgageable”.

You should refi. then you wont have to even take out a loan!

You can get a loan 1 day out of bankruptcy at most lenders.