What are our options if my husband’s ex-wife is defaulting on mortgage and his name is still on it?

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What are our options if my husband’s ex-wife is defaulting on mortgage and his name is still on it?

My husband and I filed for Chapter 7 bankruptcy and included the house that his ex-wife was awarded in their divorce. We did this because she was defaulting on payments (2 times very close to foreclosure) and this was gravely effecting his credit. She was awarded the property (he signed the quitclaim deed) but was still listed as responsible for the mortgage. However the papers did not indicate she had to refinance, leaving his name on the loan. So, we are no longer responsible for the debt, however his name is still on loan. Since she is defaulting again it is further effecting his credit. What are our legal options?

Asked on September 2, 2010 under Real Estate Law, Washington

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

You need to immediately seek the advice of legal counsel is well educated in both divorce, real estate and bankruptcy law.  It appears the court may have goofed and your husband or his divorce counsel should have requested clarification on the divorce.  Further, simply having a divorce decree indicating what should happen to the house title and mortgage (2 separate items) is not sufficient for a mortgage lender or servicer.  Your husband should have had language placed in the divorce decree requiring she obtain a loan to have the mortgage solely in her name, then he could have considered a simultaneous quit claim. The lender doesn't want to lose a borrower and lose its security so you may have run into this very issue when you quit claimed the property (which actually may help you in the divorce decree amendment). 


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