Divorce Decree Loophole?

[danni2004]

What is the name of your state?What is the name of your state? NY

I was divorced 13 years ago and recently discovered that my name is still on the mortgage we had when we were married (ex-husband still owns the house).
Per our divorce agreement regarding the “Marital Residence”:
Husband & Wife agree that husband shall have the right to remain in exclusive possession of the residence, w/o interference from the Wife. Husband shall be solely liable for all costs/expenses directly/indirectly relating to the home, including mortgage payments, taxes, insurance, utilities, operating, repairing, and improving the home, and such parties specifically agrees to indemnify the Wife and hold her harmless with regard thereto, including any/all costs atty. fees, court costs, and disbursements arising out of a breach of this provision. Further, Wife relinquishes any/all right to/interest in the residence. Moreover, Wife shall Quit Claim her interest in the residence to the Husband upon the signing of an Order & Decree by the Court in this matter.

I wrote to him requesting that he contact the mortgage co. to remove my name from the mortgage. He wrote back stating that he contacted them and was informed he would have to refinance (~$1,000.00) which he is unwilling to pay for. He goes on to say that if he defaults on the payments I would be protected from liability concerning ancillary costs associated with a court action but the divorce agreement does not relinquish me from the debt owed to the bank. He also says he is under no obligation to refinance but would do so if I paid for the refinance. I might add that his best friend is a lawyer.

I cannot afford to pay for the refinance or to seek counsel regarding this matter. My credit is being affected by this issue since it appears I have too much debt and I will continue to have trouble obtaining a mortgage, car loan, or a low-interest credit card.

Could someone please let me know if he is correct, based upon our agreement? Can he just continue to screw me over for the next 15 yrs? Do I have a leg to stand on? Any suggestions?

Thank you in advance for any advise given.

 

[stealth2]

Unless he was ordered to refi, he's not required to.

 

[nextwife]

It appears that you (or your attorney) failed to include language that would have required him to refinance. Sounds as though he is not in default of the agreement language, he IS maintaining the taxes and payments, etc. e.

Personally, I tell everyone I get a chance to talk to that they should never agree to sign over an interest in RE UNLESS the other party will simultaneously remove them from the mortgage via either refi or payoff.

 

[danni2004]

It can't be argued that the affects on my credit rating would be an indirect cost? Or even though I Quit Claim my interest there is some loophole that would give me back that interest since my name is still on the mortgage?

I was young & naive (I know, no excuse), wanted to keep things as amicable as possible but this divorce has been following me ever since and every couple of years ends up costing me in some way.

Thank you

 

[nextwife]

It can't be argued that the affects on my credit rating would be an indirect cost? Or even though I Quit Claim my interest there is some loophole that would give me back that interest since my name is still on the mortgage?

I was young & naive (I know, no excuse), wanted to keep things as amicable as possible but this divorce has been following me ever since and every couple of years ends up costing me in some way.

Thank you

There are lots of men and woman in your position. Seems to me that a lot of people involved in the legal process of divorce (including some attorneys) have little understanding of the long term implications, from a creditor underwriting perspective, of these agreements for splitting shared assets. Leaving a 20 or 30 year debt obligation "out there" has serious long term consequences and definately impacts one's ability to use credit in the future, even if the other party has never been late or defaulted on a payment on the old debt.

Of course, 13 years ago, lenders didn't USE credit scores, most mortgage loans were still written through local S&Ls. one could easily find a portfolio mortgage, credit cards with zero balances didn't count agtainst your credit, and so on.

He has no obligation to refinance. If you make it worth his while, maybe you can convince him to do so.