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Posted By: annasnewlife Refinancing - 11/24/08 09:59 PM
When we got divorced, we were in the process of buying an acreage on contract. We also had a second mortgage because he ran up so many bills. It's been 18 months since he left and I've made every payment, so the house, taxes, mortgage loan, and insurance have all been kept current. I've also made alot of improvements to the property.

Originally, we planned to sell and the division of the money is spelled out in the divorce decree. After showing the house for a year and having over 20 potential buyers look and decide against it because of financing problems or structural problems, I realized that it needed to much work to sell just then, and that if I was going to put all that money into it, I'd rather keep it. I contacted my ex and he agreed that his share of the equity was $8,000. $28,000 is still owed on the property, so I need a loan for $36,000 to pay off the contract, the mortgage, and the ex. The property is appraised at $56,000.

Now, the hard part.......getting a loan with credit made poor by the ex quitting his job 6 months after we married and refusing to contribute to the household income. I managed to keep up with house and car payments, but my credit cards fell by the wayside and I defaulted on 3 of them. I had alot of late payments too. So, my credit score is only 570. Although my banker knows me well and knows how I've struggled, he told me he can't write me a loan. I had hoped that my mom would help out by cosigning or buying the property and selling it back to me, but she can't do it.

Any suggestions? I've been paying on this property and making improvements for 4 years and I really don't want to have to sell now, but I do need to pay off my ex and get his name off the contract and loan.
Posted By: TheRoad Re: Refinancing - 11/24/08 11:49 PM
Why can't you hold where you are for the time being?
Posted By: annasnewlife Re: Refinancing - 11/25/08 12:10 AM
TR,

That would be the ideal. However, my ex is calling and threatening me with contempt of court if I don't get him his money. (He is still not working.) While I don't think he would win because the language in the decree is so vague (I had an attorney, he chose to represent himself), it is causing me alot of stress and anxiety to have to continue to deal with him. I'd like to pay him his share and get him off my back. We had no children together and the marriage only lasted 3.5 years.

The contract also states that it has to be paid off by Sept. 2009 or I lose the property and equity, which is another concern.
Posted By: Lucks Re: Refinancing - 11/25/08 03:31 PM
Anna - Do you have any trust fund money left? (Wasn't it a trust fund?) Pay off your Ex the $8,000 somehow, and at least that's one worry down. If you can't, tell him sorry, but you're doing your best and will keep trying. If he takes you back to court, plead your situation to the judge. That's about all you can do on that situation.

You might want to explore companies that offer credit settlement, to combine your credit cards and pay them back at a lower monthly rate. If there's anything you can contest on your credit reports, do that.

Meet with a bankruptcy attorney and see what arrangements would be made if you filed, regarding the property and what you owe your Ex.

Just part of the leave no stone unturned approach....
Posted By: annasnewlife Re: Refinancing - 11/25/08 09:00 PM
Hi Laura!

How ya been? It's been awhile......

No, no trust fund for me; my 1st ex had an inheritance but that was all his. Unfortunately, paying ex #2 the $8,000 won't work as I have to get his name off the contract and the loan, which means refinancing or selling is the only way to go.

I'm working on the credit report stuff as to paying it off, but that takes time and I have two things making me anxious to get it taken care of, 1. the contract is due in Sept. 2009 so it HAS to be refinanced as there will be about $18,000 due at that time. 2. ex #2 is being a real jerk about it and as he inherited some money recently he can afford to hire a lawyer to take me to court over it, even tho it's doubtful he'd win.

I've talked with two banker friends now who gave me 3 solid leads to mortgage companies that loan to people with poor credit. The interest may be high, but I have a plan to pay off all my debt within the next year and then I'll be able to pay off the house loan more quickly. While the bankers can't write me a loan (their boards wouldn't approve it even tho they know I'm good for it), they will act as references for me.

thanks for the encouragement!
Posted By: Stellakat Re: Refinancing - 11/25/08 10:21 PM
Anna, good going taking care of your house payments all this time.

You do not have to sell or refi the home in order to get his name off the title, i have done it many times without.

1. Once, I had bought a home with a boyfriend. We were both on the title. I asked if I could take his name off there, and he said yes. I then got a Quit Claim deed and had him sign it and took his name off there. Then I recorded another type of deed in my own name.

2. Once I bought a home with another investor. I wanted to keep the home and they wanted to sell it. They wanted 10 grand to take thier name off the deed. I balked. I told them 2 grand and I would do it. WE settled on $4500. I gave them the money and at the same time made them sign the two legal deeds the first of which said they could not make any more claims on me at any time and the second was the new deed to the home saying and signing with a notary that they were selling me thier share of it.

I have done other things like this with no problem, no need to sell or refi property.

You could bargain with your EX husband for a lesser amount of money, like $2000.00.....work your way up to $3000.00 if you have to,,,,then have your attorney write something up ...to get the title solely in your name..... perhaps even a payment plan for you to pay your EX husband.

Remember everything is negotiable. He would rather have SOME cash then pay money taking you to court only to get nothing.
Posted By: annasnewlife Re: Refinancing - 11/25/08 11:29 PM
Stellakat, thanks for that info, it's good to know. My mom did offer to loan me $6,000 to get him off my back; but that's a last resort for me because a.) Then I have an additional monthly payment to her and b.) I still have to refinance by Sept. when the balloon payment is due.

Does it work to get his name off the loans and contract? Who could give me the best advice on this in my state; a lawyer or a realtor?

Thanks!

Posted By: Stellakat Re: Refinancing - 11/25/08 11:50 PM
There are a few easy steps to educate yourself.

1. Go online to Stevens/Ness forms and gaze at all the property transfer/title/ deed forms for your STATE.

2. Then, go speak with or call a TITLE OFFICER from a title company like Ticor, Chicago Title, etc. And ask how you can do this without notifying the loan company-if they say you must notify the loan company refuse to do so. You do not have to.

3. Then, go talk to a realtor or two about how to do this without selling the property. Of course they will give you a little free information but they will want to list it for sale.

4. Then, you will know your options at that point so when you go talk with an attorney after all these other steps, you will be able to speak with him fast and cheap and glean out exactly how to do it.

I feel certain that if you paid your husband cash, he would take much less. Or a payment plan....could be worked out. Be strong with him. If he has no money he is going to grab at any money he can get.
Posted By: Stellakat Re: Refinancing - 11/25/08 11:54 PM
http://www.stevensness.com/store/?Enter+Forms+Store=Enter+Forms+Store
Posted By: annasnewlife Re: Refinancing - 11/26/08 01:27 AM
Ok, thanks. You could be right on him taking less....I'm not sure where he's at financially, although his threats and yelling sure make him seem desperate. A few weeks ago a friend told me he had inherited $14,000 in June, and promptly bought a tractor and truck with it. He is now living with a girlfriend who bought an acreage for him......hmmm, how familiar does that sound?

Good thing I don't work tomorrow, I think I have some researching to do.
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