My brother in law got a divorce back in December of 2013. Part of the divorce agreement was that his ex was to take his name from the note and have her's solely on there and also that he would pay her a monthly amount of 500.00 for the first six months after the divorce to go towards the mortgage, which he did. Come to find out she was not using the money for the mortgage, she never removed his name from the note, and also foreclosed on the house which my brother in law was not informed about until it was too late and he got a letter in the mail in July of 2014. Now my sister and him want to expand their family but in order to do so they have to buy a new home..now it looks like they may not be able to do that because this foreclosure is sitting on his credit. I know that legally that's basically how it goes but is there anything he can do to fix this issue?
Not much, really , but everyone has the right to respond to any information on his/her credit report. In other words, he has the right to tell "his side of the story" and have that response on the credit report also. This way, when a lender reads the credit report, at least they will be able to know that it wasn't actually that defaulted on the note ( it was the ex-wife). He should also considered taking legal action against the ex to make her comply with the divorce decree or pay damages or face sanctions for her failure to comply ( if its not too late, he should act quickly).
