Arrange a no-fault divorce. Have one spouse hold the house and assume the mortgage. The other spouse can then go purchase a new place at sometime in the future. The spouse holding the condo can then “Walk” on their mortgage and remarry the other who is now holding a fresh new mortgage.[/quote]
Uh, yeah…pretty sure that’s called fraud.
jimmyle, I think you hit it already, the best advice is to try and rework the loan. The fact is your coworker bought a house he shouldn’t have, at nearly a 6-1 debt to income ratio w/ no money down.
A hit to his credit might be worth the lesson if the bank won’t work with him.