Does a document from a divorce agreement mean anything to a mortgage company?
Question Details: Approximately 3 years ago my fiance got divorced. He and his ex had a house. The agreement was that since he had moved out he no longer had any financial ties to the house. But his name is still on the mortgage. She couldn't refi because there's no equity. It didn't sell the first time and now it's been back on the market for over 50 days and no one is interested. His ex says she can't stay in the house because she can't afford it (neither could we) They are doing the paperwork for a short sale but we aren't sure if that will even happen. They owe more than it's worth and I just don't know what to do.
Your facts state that your fiance was divorced three (3) years ago. His wife was awarded the marital home but has been unable to refinance or sell the home. You inquired as to whether the associated divorce decree/settlement agreement has any authority over the mortgage company. The answer is no. The Court does not have the authority in a divorce action to rescind contracts between the divorcing parties and their creditors (in this case, the mortgage company). If the house cannot be refinanced or sold, the owners may want to consider attempting to rent the property to avoid foreclosure.
