Conference quokka::non_custodial_parents

120.0. "Real Estate and Divorce" by BTOVT::SCHILLER (Beth Schiller "Ski 'til you drop!") Tue Mar 26 1991 17:32

Hi!

This is my first time in this notes file so you will all have to excuse me
if this question has already been addressed.

My S.O. has just gone through divorce and we are now trying to understand
the ramifications of the settlement for future real estate buying power.

My S.O. and his ex had come to an agreement that she would stay in the house
until the kids were 18, or she remarried, or she missed 2 payments in a
12 month period.  The court asked that the EX take a secondary mortgage out
to assure my S.O. of 1/2 the current equity plus 6%/year (simple interest)
until the house was sold.  In return, my S.O. was told to sign over a 
quit claim giving her full title of the house.

The problem we are facing is....

	The banks don't seem to care about the secondary mortgage deal and
	will hold my S.O. accountable for the entire first mortgage since
	his name is still on it.

	The bank also sees that child support payment as a large porsche
	car payment, thus throwing the debt income ratios way, way out
	of proportion.

	So basically my s.o. is a liability when it comes to applying 
	for a mortgage in the future.


Lastly, we favorable interest rates, we have already come to the conclusion
that the EX have enough income (debt ratios being o.k.) to support the 
mortgage on her own.  She will not do so though , because of spite.  Does
anyone have some insight as to how this could be solved........

Thanks

Beth

    There was a discussion of this situation in one of the other notes, but
    I haven't had time to look it up.  Can someone else point Beth to the
    correct note.
    fred();

	One place it has been discussed is:

	    QUARK::MENNOTES note #572

	Richard

    
    	Beth,
    		I know this is late but...
    
    	I signed a quit claim for my ex and my name is still on the
    mortgage.  I have since bought a condo and we are in the process of 
    trying to buy a house.  The fact that my name is on that mortgage has
    not adversely effected my credit to date.  We may not get this loan
    on the house we are trying to buy but it is not due to that other 
    mortgage.
    
    	Ed