refinacing nightmare

sarahtammieMay 21, 2013

I currently own a home that has a second mortgage not in my name but in my ex's name. I signed to use the home for collateral. Ex filed chapter 7, and now I have a lien on my home. Hired an attorney, was going to settle, refinance home and pay off the lien. They are telling me I have to pay the lien off first because it's not in good standings, and the underwriters will not loan because of this. I have plenty of equity, but I do not have the up front cash to pay off the lien, does anyone have any suggestions, the lawyer said I could sue ex but the cost would be high and I probably would only get a small amount because of ex's current money problems. Any suggestions, I don't want to sell and if I don't settle now the interest keeps going up, It's like a catch 22 here. My current rate is 6% so the rates these days are great. Any suggestions from anyone would be great.

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Sounds like you have a lien to pay.... sorry!

"I currently own a home that has a second mortgage not in my name but in my ex's name."
IF the house has a mortgage, and that mortgage is not in your name, you do not own the home.

    Bookmark   May 21, 2013 at 8:45AM
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You hired a lawyer to give you advice. I doubt that anyone on an internet forum can give you better advice. You have to deal with this second mortgage - either now or sometime down the road. It isn't going to go away. If you do it now, you can refinance. If you don't deal with it, then you can't refinance.

    Bookmark   May 21, 2013 at 9:47AM
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Go to the holder of the second lien and ask for a new mortgage that wraps their lien into it. They have the most to gain from you obtaining new financing (their existing loan will be paid from the proceeds of your new loan). I've made hundreds of similar loans in similar situations.

Good luck. Not an easy situation to be in.


    Bookmark   May 22, 2013 at 1:04PM
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How can you get a loan or refinance a house that doesn't have your name on it.

    Bookmark   May 22, 2013 at 6:00PM
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The OP said that the second mortgage is not in her name. That's a completely different thing from saying the title of the house is not in her name.

Triciea's suggestion to contact the lender on the second mortgage is an excellant idea.

Good luck!

    Bookmark   June 2, 2013 at 4:27PM
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Thank you for the explanation.

    Bookmark   June 2, 2013 at 8:48PM
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This situation should have been addressed in your divorce, shouldn't it? Can you go back to the court that issued the divorce to get this solved? I don't know--just seems that someone dropped the ball back then. Maybe your own attorney, in which case you might have a malpractice case against him or her. In any case, it does seem you're going to be stuck with taking care of this--the suggestion of refying with the lien holder may be the best you can do for now.

    Bookmark   July 9, 2013 at 3:35PM
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