I have a questions on Refinancing of Home After Divorce

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Q. Ex wife of nephew called me the other day. Her divorce was final last Oct. In their divorce papers it states she gets the family house and she has to attempt to refinance within 3 months, to remove ex off the mortgage. The final papers further state the interest has to be 8% or lower for her to refinace, or her ex can buy the extra points down to get the interest down to 8%. She has tried to refinance three times (and has proof of this) and because of a few credit problems that were caused during their seperation, before her ex was ordered to pay CS he was paying zero and she got behind on some bills, she has not been able to get a better interest rate than 10%. She had asked ex if he wants to buy it down and he has said no way. She also recently found out that she can have her ex removed from the existing mortgage if there is a $500 fee paid to the mortgage holder (this wasn't an option during the divorce, her mortgage was recently sold off to another bank who has this option). But she will still have to wait until the bad marks are gone to do this, as they still run her credit. Her ex has also refused to pay the $500 saying it is her house and her problem. She gets a call form her attorney and finds out ex is taking her back to court, in April, because he wants his name off of the mortgage NOW. Ex is saying his credit is being adversly affected by her not paying the mortgage on time. He says his Citibank Visa has had it's interest raised from from 10% to 22% because she is behind in her mortgage payments. Of course she has paid her mortgage on time every single month since the divorce but ex claims she hasn't and it is making his interest on his credit card increase. Is this even possible? I have never heard of a credit card company raising their interest rate because you are behind in other bills, unrelated to the actual credit card bill. She now has to rehire her attorney. Will she have to pay her attorney for this, or will her ex end up having to pay her attoreny fees since he is asking her to do something different than what is clearly stated in the final papers? She has found out the bad marks on her credit will be gone this coming Oct. So she was going to go into court and say she will refinance then. I cautioned her to be very careful as to making any gaurentee that this will happen in Oct. I told her to state the following about an Oct. refinance.... 1) Provding the bad marks on her credit report are gone AND a maximum of 8% interest is attainable by her an Oct refinance date is likely. 2) If the interest is over 8% her ex will still be required to buy it down for her to refinance if the rates are over the 8%, come this Oct. 3) If the bad marks are off her credit report and her present bank will still extend the offer to remove the ex from the mortgage, keeping her current interest rate, for a $500 fee, that the ex will have to pay the fee. Is there any other info I should share with her regarding this? Any other loop holes she should be prepared for? The ex is a real schmoe. He is bringing her back to court only 5 months after the final divorce, and trying to blame her for his credit card interest increasing. Of course, according to *his* credit report he is rated very low due to his own late payments to all of his creditors. I heard he and his new wife, yes he remarried to his mistress a few days after the divorce was final, want to buy a new home. I guess because his name is still on his exes mortgage he can't do this. I feel bad for them, but he isn't willing to follow what the courts ordered on this issue and expects his ex to eat the extra % points because he wants to buy now. Little does he know his bringing this back to court is going to be an even bigger problem financially for him. His ex has been letting him slide on things like, he was ordered to pay half of all their childs extra curricular activities, and he misrepresented what he actually makes because he never supplied current pay stubs at the end of the divorce, just ones from the year of the initial filling and there is a 10K differance between now and then, so he is in arreas. I guess her attoreny is going to zero in on these things since they will be before the judge at the exes request. What a bozo our nephew is.

A. -More likely he was late on his credit card payment twice in a six month period. Even one day late will do it. -They both must have really bad credit, the loan rates have been low for a while and are available for under 7.5% for fixed 30-yr., for GOOD credit rating. The target of 8% was probably set w/o consulting someone about what the rates would be for bad credit. I don't understand why she needs to refinance to get him off the mortgage. A quit claim deed can be done but you state that she needs good credit to do that. This just seems like something that wasn't very well thought out. And you call the guy a schmoe for taking her to court five months after the divorce. Well, he may be regardless, but she IS not following the court date of refinancing within 3 months, it;s a contract and she's not holding up her end of it. If the court order stated the guy was "required" to pay down the points, that'd be different, you state that he's allowed to, but chooses not to. If they're going to start bringing up all his income if he takes her to court, so be it, that's his problem.

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