I don't understand. Can I get a new mortgage if old mortgage IIB is still being paid?

[cupcake]

I have been reading a lot of threads on this topic lately and I am totally confused about this process.

I had a conventional mortgage with my exH that was awarded to him in the divorce. He got the house and the obligation to pay the mortgage. My name was NEVER on the deed, only the mortgage. We both filed and received a CH7 discharge, including the mortgage. He chose to stay in the house and has been paying to stay every since, so no foreclosure. It's a small mortgage payment and is around $600 per month. It's been over two years since my discharge.

Since our divorce, I remarried and I moved into my current DH's house. We recently put it on the market and want to buy a house together. So, if I understand correctly, we are going to have difficulty getting a joint FHA mortgage because my ex is still paying the IIB mortgage and living there? If so, we would have been better off just letting the bank foreclose! All along, he and I thought he was doing the right and smart thing by staying in the house, paying and not allowing it to go into foreclosure.

Does it matter that my name was never on the title/deed to the house and that it was awareded to him in the divorce? Will it help if I can show the new mortgage lender that he is still paying the mortgage by showing the payment history and his bank records?

I am so confused.

[Logan]

Call a lender or 2. You aren't responsible due to a divorce decree, you filed BK so that also alleviates you of responsibility and the mortgage is current and being paid. You will have to have someone run it by an underwriter. Do you need your income to qualify? It's more important for you to be on title than on the mortgage and if your husband can qualify for the loan without you then you can get on title after the loan closes.
Bottom line, call a lender because we're not getting you the money, they are.
Logan

[cupcake]

Thanks, Logan.

I don't think we will need my income to qualify. I think my DH could get the mortgage in his name only and then quit claim the title to both of us. We have no debt other than the current first and second mortgages, which are only in his name, and he has near perfect credit. The only potential issue might be that I plan to borrow money from my 401k to use as a down payment for a new home (if our home sells) and in order to get better payback terms I need to prove that the money is being used to purchase a primary residence. If my name is not on the mortgage, I suppose that could possibly pose some problems...

I would just like my name to be on both the mortgage and title because of issues relating to our kids from his first marriage, who live with us full time. One can never be too prepared...

[Sweetpea3829]

Honestly, I don't think you'll have a problem. For one thing, the IIB mortgage will show up on your credit file as IIB and that's it. If the lender inquires of the status, you provide your divorce documentation that shows the house was awarded to your ex. Done. I don't believe they can legally hold you responsible for the debt given that the house was legally awarded to your ex and given that your name is not on the deed.