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Contributor

I've been divorced for 4 years now, and in my divorce agreement my ex-spouse gets the house. With the agreement she would refinance or sell within the next 2-3 years. I just found out that she never refinanced and is in foreclosure status. She also hasn't paid mortgage for 2 years. This also means my name is still attached to the mortgage, and there is no way for me to bale the house out of foreclosure. I've been keeping up with all of my bills, and was looking to buy a house. Found out my credit score is around 630, and the only thing hurting me is this house. My question is, what is the chances of me getting a house now or how long do I have to wait, and what steps do I need to take to improve my credit?

2 REPLIES

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I'm sorry to hear that you've been through a divorce. I suppose there are legal ramifications for her not honoring her part of the agreement or letting you know that she wasn't going to so you could have had the opportunity to help but I'm not necessarily encouraging you to pursue that in any way. I have to ask... have you tried to contact who the house is in foreclosure with? Sometimes a few phone calls seem to go a very long way. If that isn't an option, then I would say that the very best way to secure future property is to continue to pay off your bills before attempting to purchase additional property. Avoid carrying alot of unnecessary debt and then slowly work on putting away a small amount of money each pay with the hope of using it for a future down payment when the time comes. When it comes to purchasing a home in the future, I've found that USAA is a great company that is wiling to work with you and guide you towards a future purchase. They will gladly tell you what they think you can afford and what kind of a down payment they recommend. They are also reasonable in looking at what your financial history since the divorce says about you. What they will look for in offering you a loan is whether or not you are a "healthy" financial risk or not? Are you good for your word? Are you a good steward of your funds? Do you live within your means or are you someone that lives off a cycle of credit and paying minimum balances? Don't be discouraged as many have been in your position and live to speak of it from new homes they've purchased. Most likely, it will be easier to move forward once the property has foreclosed and you've gained some healthy time and history. 

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Good questions. After 30 years as a mortgage broker, this is an issue I saw a lot of. Two things to do as fast as you can. First go to the court house and get a Certified copy of your Interlockatories. Then, get ahold of the mortgage lender, they will want the certified copy, With that they can and must stop reporting you to the credit companies. Go to the court and give them the foreclosure proof, what she did/is doing, is a violation of the orders, and the court can and will help you. The answer to your question of how long, seven (7) years is typical for NOD's and BK's. However, with a 5% down! and the proof that you were/are an innocent, you stand a good chance at an FHA loan. Good luck.