Can My Ex’s Credit After We Divorce Affect My Ability to Get a Mortgage in Massachusetts?

I worked with a buyer who was ready to purchase a home with his girlfriend. They were excited, preapproved, and had found the right property.

Everything seemed fine until the lender pulled his final credit review.

There it was.

A foreclosure.

The problem? He didn’t know about it...

How Did This Happen?

During his divorce a few years earlier, his ex-wife kept the marital home. Their divorce agreement stated that she would be responsible for the mortgage payments.

What he didn’t understand was that his name was still on the mortgage.

When his ex stopped making payments, the home went into foreclosure, and the foreclosure was reported on his credit because, legally, he was still a borrower.

Even though he no longer lived there.
Even though the divorce said she was responsible.

The lender doesn’t follow the divorce decree.
The lender follows the loan documents.

Deed vs. Mortgage: The Critical Difference in Massachusetts

This is where many people get confused.

In Massachusetts:

• The deed determines ownership of the property.

• The mortgage determines who is responsible for the debt.

You can be removed from the deed and still remain fully responsible for the mortgage.

Only two things remove your liability from a mortgage:

• A refinance into your ex’s name only

• Or the loan being paid off

A divorce judgment that assigns responsibility does not remove your name from the loan.

That’s a critical distinction.

What Happened Next?

Because the foreclosure appeared on his credit, he no longer qualified for the conventional mortgage.

In most cases:

• Conventional loans require up to a 7-year waiting period after foreclosure.

• FHA loans may allow eligibility after 3 years.

Instead of waiting several more years, he chose to move forward using FHA financing.

TAKEAWAY TIP

If your ex is keeping the house in a Massachusetts divorce:

✔ Confirm your name has been removed from the deed.
✔ Confirm whether your name is still on the mortgage.
✔ Require refinancing within a clear timeframe, if possible.
✔ Monitor your credit report regularly.

Do not assume that because your divorce agreement assigns responsibility, you are financially protected.

The bank cares about the loan documents, not the divorce terms.