Divorce and Late Payments

[Mike]

My current fiance and his ex wife were divorced May 2007. In their decree (sp) they agreed the house would be placed on market. After 8 months or so, and no offers, ex wife would like to refinance to keep the house. Both verbally aggreed, and the house was taken off the market in preperations.Roughly 3 weeks ago, while reviewing his credit report, my fiance and I noticed she had not paid the mortgage since March. Agreement was, each paid half, she would send in payment (bad idea!) Now over $5,000 behind (adding to their already poor credit), she continues to attempt refinance. Her newest scheme is to take out another loan, catch back up on payments, and pay my fiance andquot;his partandquot;(?) To do this, he andquot;needs to quit claim deed the house to herandquot;. I have a BAD feeling about this situation. I feel foreclosure or worse is coming! Fiance is meeting with his lawyer on Monday do discuss the situation from a legal standpoint. Can anyone offer any advice on the situation to prevent his credit from falling further down the tubes?? We plan on building a house in the next 12 months, so this is kinda important! (If it makes a difference, the mortgage is with Wells Fargo.)