Does a document from a divorce agreement mean anything to a mortgage company?

Approximately 3 years ago my fiance got divorced. He and his ex had a house. The agreement was that since he had moved out he no longer had any financial ties to the house. But his name is still on the mortgage. She couldn’t refi because there’s no equity. It didn’t sell the first time and now it’s been back on the market for over 50 days and no one is interested. His ex says she can’t stay in the house because she can’t afford it (neither could we) They are doing the paperwork for a short sale but we aren’t sure if that will even happen. They owe more than it’s worth and I just don’t know what to do.

Asked on July 21, 2012 under Family Law, Connecticut


Anthony Van Johnson / VANJOHNSON LAW FIRM, L.L.C.

Answered 8 years ago | Contributor

Your facts state that your fiance was divorced three (3) years ago.  His wife was awarded the marital home but has been unable to refinance or sell the home.  You inquired as to whether the associated divorce decree/settlement agreement has any authority over the mortgage company.  The answer is no.  The Court does not have the authority in a divorce action to  rescind contracts between the divorcing parties and their creditors (in this case, the mortgage company).  If the house cannot be refinanced or sold, the owners may want to consider attempting to rent the property to avoid foreclosure.  

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.