Both parties unable to refinance home... now what?


#1

Due to a tax situation that existed before we were married, there is a lien on my home in my husbands name only for a totally ridiculous amount of money. Both of our names are on the mortgage, and my spouse has been threatening me for many years that he will kick me and my son out of the home. I know that he will never leave the house, and I would be scared to try to make him. If I leave the home and then file papers to try to get my name off of the mortgage, but that leaves him unable to refinance due to the lien where does that leave us? What would be the best way to handle this for both of us? Thanks


#2

Nothing you can do to get name off Mortgage other asking mortgage holder to remove it (which they typically don’t), paying off mortgage, or refinancing it.


#3

If he can’t refinance then the lender would have to release you, and that doesn’t often happen.


#4

If I have no job and could not pay any mortgage payments why wouldn’t the mortgage company release me if I filed a quit claim? The lien is not in my name at all, just the house is, and if he is keeping it, I would be entitled to half the equity, correct? He makes more than enough money to continue paying the mortgage. If you were advising us on how to handle this best what you advise? Can you please be a bit specific? Thanks


#5

The mortgage company will likely not release you-All you can do is ask. You are entitled to half the equity in the house, but if he can’t refinance then he’d have to come up with another way to pay your half of the equity and you’d remain on the mortgage, or the two of you could sell the house.


#6

Could she force the house to be sold at auction? That could force the lender to take a beating and loose the collateral. Perhaps that threat might make the bank more reasonable.


#7

not an attorney

Don’t think allowing the house to go to foreclosure/auction is the best route, as it will destroy your credit for the next 7 years. Rebuilding credit and financial stability is hard enough after a divorce without something huge like that fighting against you.


#8

What if I did manage to get a job making enough money to refinance the house in my name- here’s another question: Would the bank release HIM even though he has the lien if I qualified for the refi?