Here are some steps to take. Require the person receiving the home to refinance. However, this can be an empty requirement if the person cannot refinance. Thus, it is best to find out from the lender if they are likely to allow a refinancing before putting that provision in the agreement. In the recent decision of Mitchell v. Mitchell, No. 2010–CA–00897–COA (Decided 8/9/11) the agreement required Kimberly to “attempt to refinance.” She was unable and when Bobby sought to hold her in contempt, the Court found that she was only obligated to try and was not obligated to succeed.
Another solution is to retain a security interest in the property. If the person does not make the payments, the security agreement would allow taking over the property and making the payments. This would be similar to a second mortgage. The best solution, however, is to predetermine if the person would qualify for refinancing.