Advice requested on a little house trouble

[Steffenfield]

Hey all.

In my divorce, per her request, I left my ex our home that still had an outstanding mortgage due.

I had my attorney draft a quick claim deed on the property and delivered this personally to my ex.

This quick claim deed was fully mentioned in the divorce papers that I still own a copy of.

My ex never bothered to submit that form and eventually left the house and filed for bankruptcy, leaving the debt on the home in my name.

I would like to have this debt redacted from my credit score.

Is there a form that I can personally fill out myself on this without the additional costs of an attorney to do it for me?

I would be very thankful if someone could point me in a good direction to get it all started.

Most kindly,
Steffenfield from Lansing, Michigan

 

[stealth2]

The quit claim deed didn't absolve you of your obligation to the lender. All it did was give him the rights to the house. Until such a time that the house was/is refinanced in his name only, you were/are responsible for the debt incurred via the mortgage (assuming your name is on the mortgage. So no, it's unlikely that you will be able to get that blot off of your credit rating until enough time passes (I no longer remember how many years that takes).

 

[Steffenfield]

Thank you so much Stealth. ♥

I guess I should call the bank sometime soon and see what might be needed to have this resolved.

I thought it was just a legal problem.

 

[stealth2]

Thank you so much Stealth. ♥

I guess I should call the bank sometime soon and see what might be needed to have this resolved.

I thought it was just a legal problem.

Nope - it's a financial problem. The lender is likely to want money from you. I would call them sooner than later.

 

[latigo]

Thank you so much Stealth. ♥

I guess I should call the bank sometime soon and see what might be needed to have this resolved.

I thought it was just a legal problem.

Not that it would affect your personal liability on the mortgage note, (assuming you are on it) but what did the final decree have to say about the mortgage? Is there language that can be said to require the ex-husband to assume that mortgage balance and hold you harmless of further liability?

In other words, if the decree had been drafted with your bests interests in mind, inasmuch as the home was awarded to him as his sole and separate property it should have been on the condition that he fully assume the outstanding mortgage loan and indemnify you (i.e., hold you harmless). *

If so, then you would have legal recourse back against your ex should the bank choose to seek some form of restitution from you. (Example, a deficiency judgment.)

If no indemnity clause, then you were poorly represented and would have no such recourse per the decree. The status of joint and several liability on the loan would obtain as from the beginning. And your only recourse against the ex would lie in the theory of contribution between joint obligors. If you wish clarification, just ask.

But don't expect a satisfactory "resolution" from a mere phone call to the bank.

____________________


[*] Even better than an indemnity clause would have been to add an order that the ex refinance the mortgage loan in his sole name, and if not within a reasonable time, the home sold with the court retaining jurisdiction to monitor and make such subsequent orders as deem appropriate.

 

[Steffenfield]

My ex wife is the one who filed for the divorce.

Looking over the copy of the Consent Judgment that I have, it shows the following on page 2.

Property

4. Real Property. Plaintiff is awarded the marital home at 3120 Reo Road, Lansing, Michigan, 48906, described as follows: "Lot 238, Churchill Downs No. 1, City of Lansing, Ingham County, Michigan," subject to any and all mortgages including, but not limited to BAC Home Loans Serv LP #97099**** and #87265****, 450 American Street, SW, Simi Valley, California, 93065, (800) 669-6607), which Plaintiff will assume and pay, holding Defendant harmless from any liability. Defendant will convey his interest in the property to Plaintiff by executing and delivering a recordable QuitClaim Deed together with assignments of the homeowner's insurance, title insurance, and any funds on deposit with the mortgagee(s) in the escrow account (if one exists). On his failure to do so, a copy of this Judgment may be recorded with the Register of Deeds as a self-executing conveyance or presented to the Court ex parte for purposes of securing an order that will serve as a conveyance of the property.

Also, I was sent in the mail for some reason a notice of Chapter 7 Bankruptcy Case, Meeting of Creditors, & Deadlines in her name perhaps a year or two later after the divorce.

I'm not sure what happened with her since I lost all touch with her over six years ago.

Apparently she filed for bankruptcy and this judgment was given the approval.

So what would be in my best interest to move forward on this?

Thanks guys!

 

[stealth2]

The lender is not bound by your divorce order. The order allows you to take her to court for contempt, and ask that she be ordered to pay you the money you had to pay the lender.

 

[LdiJ]

My ex wife is the one who filed for the divorce.

Looking over the copy of the Consent Judgment that I have, it shows the following on page 2.

Property

4. Real Property. Plaintiff is awarded the marital home at 3120 Reo Road, Lansing, Michigan, 48906, described as follows: "Lot 238, Churchill Downs No. 1, City of Lansing, Ingham County, Michigan," subject to any and all mortgages including, but not limited to BAC Home Loans Serv LP #97099**** and #87265****, 450 American Street, SW, Simi Valley, California, 93065, (800) 669-6607), which Plaintiff will assume and pay, holding Defendant harmless from any liability. Defendant will convey his interest in the property to Plaintiff by executing and delivering a recordable QuitClaim Deed together with assignments of the homeowner's insurance, title insurance, and any funds on deposit with the mortgagee(s) in the escrow account (if one exists). On his failure to do so, a copy of this Judgment may be recorded with the Register of Deeds as a self-executing conveyance or presented to the Court ex parte for purposes of securing an order that will serve as a conveyance of the property.

Also, I was sent in the mail for some reason a notice of Chapter 7 Bankruptcy Case, Meeting of Creditors, & Deadlines in her name perhaps a year or two later after the divorce.

I'm not sure what happened with her since I lost all touch with her over six years ago.

Apparently she filed for bankruptcy and this judgment was given the approval.

So what would be in my best interest to move forward on this?

Thanks guys!

You were sent a notice of the bankruptcy because you were included as a creditor in the bankruptcy, when means that you are unable to sue her for her failure that indemnify you from the mortgage debt. Her obligation to you has been discharged in bankruptcy. I am truly sorry.

 

[Ohiogal]

You were sent a notice of the bankruptcy because you were included as a creditor in the bankruptcy, when means that you are unable to sue her for her failure that indemnify you from the mortgage debt. Her obligation to you has been discharged in bankruptcy. I am truly sorry.

He can go after her for contempt of court by filing a motion to show cause and asking the court to hold her in contempt.

 

[LdiJ]

He can go after her for contempt of court by filing a motion to show cause and asking the court to hold her in contempt.

He can, but the court cannot override a bankruptcy, so what is the point?

 

[Ohiogal]

He can, but the court cannot override a bankruptcy, so what is the point?

The court can put her in jail. It happens. She harmed him with her actions. And depending on when she filed in relation to the divorce, it could be considered fraud. And no, the court cannot override a bankruptcy, but the terms of a divorce decree are SEPARATE than a bankruptcy. A bankruptcy does not destroy a hold harmless order. If she couldn't afford it, she could have held him harmless by engaging in other actions -- giving him the opportunity to buy the house or attempting to sell the house or various other things.

 

[LdiJ]

The court can put her in jail. It happens. She harmed him with her actions. And depending on when she filed in relation to the divorce, it could be considered fraud. And no, the court cannot override a bankruptcy, but the terms of a divorce decree are SEPARATE than a bankruptcy. A bankruptcy does not destroy a hold harmless order. If she couldn't afford it, she could have held him harmless by engaging in other actions -- giving him the opportunity to buy the house or attempting to sell the house or various other things.

Ok, I can see how she could get in trouble if she did not notify him in advance and give him the option to help mitigate the issue. However, she included him as a creditor in the bankruptcy and therefore he cannot act as a creditor against her. That would get HIM in trouble.

 

[Ohiogal]

Ok, I can see how she could get in trouble if she did not notify him in advance and give him the option to help mitigate the issue. However, she included him as a creditor in the bankruptcy and therefore he cannot act as a creditor against her. That would get HIM in trouble.

Hold Harmless is NOT being a creditor because no money has been ordered for the HOLD HARMLESS.

 

[LdiJ]

Hold Harmless is NOT being a creditor because no money has been ordered for the HOLD HARMLESS.

I think that you might be flirting with semantics there.

 

[latigo]

My ex wife is the one who filed for the divorce.

Looking over the copy of the Consent Judgment that I have, it shows the following on page 2.

Property

4. Real Property. Plaintiff is awarded the marital home at 3120 Reo Road, Lansing, Michigan, 48906, described as follows: "Lot 238, Churchill Downs No. 1, City of Lansing, Ingham County, Michigan," subject to any and all mortgages including, but not limited to BAC Home Loans Serv LP #97099**** and #87265****, 450 American Street, SW, Simi Valley, California, 93065, (800) 669-6607), which Plaintiff will assume and pay, holding Defendant harmless from any liability. Defendant will convey his interest in the property to Plaintiff by executing and delivering a recordable QuitClaim Deed together with assignments of the homeowner's insurance, title insurance, and any funds on deposit with the mortgagee(s) in the escrow account (if one exists). On his failure to do so, a copy of this Judgment may be recorded with the Register of Deeds as a self-executing conveyance or presented to the Court ex parte for purposes of securing an order that will serve as a conveyance of the property.

Also, I was sent in the mail for some reason a notice of Chapter 7 Bankruptcy Case, Meeting of Creditors, & Deadlines in her name perhaps a year or two later after the divorce.

I'm not sure what happened with her since I lost all touch with her over six years ago.

Apparently she filed for bankruptcy and this judgment was given the approval.

So what would be in my best interest to move forward on this?

Thanks guys!

LISTEN UP, Stef!

Ignore any idiot that foolishly tells you the ex's bankruptcy proceeding could have in any way have released/discharged/ forgiven/absolved her from the "hold harmless clause" (mortgage) as you have above quoted from the divorce decree!

Her obligation to you as stated is expressly excluded from a discharge in any of the various Chapters of the Bankruptcy Code . See: Title 11 U. S. Code Section 523(a)(15)

(a) A discharge * * * * of this title does not discharge an individual debtor from any debt—

* ** *
(15) to a spouse, former spouse * * * * that is incurred by the debtor in the course of a divorce or separation or in connection with a separation agreement, divorce decree or other order of a court of record, * * * * (Edited for emphasis)