Posted by JPiper on March 03, 1999 at 10:06:39:
Competent divorce attorneys allow this to happen all the time…it seems to be the rule rather than the exception. See my post above for what could have been done.
Your attempt to buy the note is a good solution if you can get the lender to play ball. The problem is how you get the money necessary to purchase the loan. You might be able to attract some private investors, agreeing to repay them quickly with the proceeds from a sale of the property after your foreclosure, or from the proceeds of a new loan once you own the property after a foreclosure. Obviously you would need to create a financial incentive for the private investor…something to make it worth his while.
Chances are high if this is a first mortgage you won’t be able to buy at a discount. It’s even possible they won’t sell at any price…institutions sometimes make stupid decisions.
I’d check the divorce agreement. Sometimes language is in there making the owner spouse responsible for the loan. You might be able to sue under this clause…but if the spouse has no money or assets in particular, this is probably a waste of time and money.
Good luck with your situation.