My son gave his wife the house in their divorce but her credit was too awful so the mortgage stayed in his name. He made her payments for 6 years as they had a small child and it says in the divorce decree that she would take over payments. She didn't and the house is in foreclosure. How long is this in his name and not hers and when can he buy a home or car again. His second wife died and he moved back to this area with his 6 and 7 year old thinking he could buy a house. He sold his house in Kansas.

Terry Says:

Whew — that was a terrible divorce decision.  Hindsight now, but he should have kept ownership of the house and let her live there rent-free for a period of years.  Whoever was his divorce attorney certainly left him vulnerable!  And that foreclosure will impact his ability to get a loan — and the rate he will pay — for probably the next 7 years.  At last if he rents now, he can explain the situation to the landlord and maybe it won’t impact his rental charges.  I’d suggest he rent for a while, trying to save more money so he can put a larger down payment on a house the next time around.

Rebuilding his credit is important.  So he needs to use credit carefully, paying in full and on time each months.  Check his credit report during the year at — free, from each of the three bureaus once a year.

The only other option —  and I hesitate to suggest it — is that you could co-sign for the loan.  And assuming your credit is good, he might be able to buy now.  But that is a terrible burden to shoulder at this stage of life.

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