I am divorced from my spouse, but both our names are on the house. By the divorce decree, my spouse makes all of the house payments and repairs. My spouse is filing for bankrupcy and a loan modification. Will that effect my credit also, since by decree I am not liable for house payments? Does signing the house over change anything as far as effecting my credit?
The divorce decree is a binding agreement between you, your ex-spouse and the court, but it does not affect your contractual obligation to the lender. If your spouse fails to make the loan payments on time, your credit could be affected unless you pay them yourself. The bank may refuse to approve a mortgage modification without your participating in the agreement, and it is under no obligation to release you from the mortgage loan obligation unless the loan is fully paid off.
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The divorce decree is a binding agreement between you, your ex-spouse and the court, but it does not affect your contractual obligation to the lender. If your spouse fails to make the loan payments on time, your credit could be affected unless you pay them yourself. The bank may refuse to approve a 