Ex-husband claiming he can sell MY house?

[frankkitten]

What is the name of your state (only U.S. law)? Wa.
OK, here's the thing. My ex and I got divorced in 2006. The house was awarded mine in the divorce decree and I have the signed-over quit claim deed from him. There was nothing stated in the decree that said I had to refinance at all and his name is still on the mortgage loan. Well, I was late a few times this year (job related issues) and it's apparently showing up on his credit. He's trying to buy a house and is claiming this is preventing him from doing so. I've talked to loan officers who say that if his credit is really good, these late payments shouldn't affect him. He swears that he "will force the sale of the house!" because it's affecting him and he's still on the loan. How is it even possible if he doesn't own the house?

 

[LdiJ]

What is the name of your state (only U.S. law)? Wa.
OK, here's the thing. My ex and I got divorced in 2006. The house was awarded mine in the divorce decree and I have the signed-over quit claim deed from him. There was nothing stated in the decree that said I had to refinance at all and his name is still on the mortgage loan. Well, I was late a few times this year (job related issues) and it's apparently showing up on his credit. He's trying to buy a house and is claiming this is preventing him from doing so. I've talked to loan officers who say that if his credit is really good, these late payments shouldn't affect him. He swears that he "will force the sale of the house!" because it's affecting him and he's still on the loan. How is it even possible if he doesn't own the house?

He can take it to court and try to convince the judge to force you to sell the home. He may or may not suceed in that since the divorce decree does not require you to refinance.

You really should try to refinance if at all possible. It really isn't fair to have his credit tied to your ability to pay your bills. However that is a personal observation, not legal advice.

 

[nextwife]

Merely having the open mortgage out there in his name would indeed impact his credit score, even without any late pays. You need to refi and get him off the loan before a judge ends up ordering you to in a less advantageous rate climate.

 

[mistoffolees]

Merely having the open mortgage out there in his name would indeed impact his credit score, even without any late pays. You need to refi and get him off the loan before a judge ends up ordering you to in a less advantageous rate climate.

If he DOES go to court, there's a pretty reasonable chance that the court will order it - since she has had late payments. While one or two late payments might not have a huge impact, 'late a few times this year' very well might - in spite of what the loan officer allegedly told her.

While having the mortgage in his name will affect his credit score, that is probably not actionable - since the situation has not changed since the divorce. Her regular late payments very well might be.

If the judge orders her to refinance, she's going to have the refinancing costs, PLUS legal expenses, PLUS the interest rate might not be as good as it is today. I agree - she should refinance now. The problem is that she's already had a 'few' late payments this year and is apparently having job problems. It may not be possible, so she may have to look at selling the house.

 

[LdiJ]

If he DOES go to court, there's a pretty reasonable chance that the court will order it - since she has had late payments. While one or two late payments might not have a huge impact, 'late a few times this year' very well might - in spite of what the loan officer allegedly told her.

While having the mortgage in his name will affect his credit score, that is probably not actionable - since the situation has not changed since the divorce. Her regular late payments very well might be.

If the judge orders her to refinance, she's going to have the refinancing costs, PLUS legal expenses, PLUS the interest rate might not be as good as it is today. I agree - she should refinance now. The problem is that she's already had a 'few' late payments this year and is apparently having job problems. It may not be possible, so she may have to look at selling the house.

She may, but not until or unless a court orders her to do so...since the orders do not require her to refinance.

 

[Ohiogal]

I bet there is a clause in which she indemnifies him against any problem or issue with the house however. Which will sink her immediately.

 

[mistoffolees]

I bet there is a clause in which she indemnifies him against any problem or issue with the house however. Which will sink her immediately.

That may be true, but it would be a tough one to enforce though. In order to indemnify someone for something, you have to put a cash value on it. How do you put a cash value on any decrease in his credit rating?

It's likely to be easier and less expensive for him to go back to court to get a new order requiring her to finance or sell the house than for him to try to prove economic harm and get her to reimburse him.

Either way, she's looking at significant expense and the longer she lets it go on, the greater the cost to her will be so she should be proactive and either refinance or sell.

 

[frankkitten]

I actually am in the process of a refi or loan modification. I have become employed again after losing my job last fall. The two late payments, after ten years of being on time, haven't affected my credit. My issue is that in the divorce decree there is nothing stated that I had to get him off the loan. I actually thought that by sending the mortgage company the divorce decree and quit claim deed were enough to take him off. All of the loan documents come to only me, in my name, so I figured he was off the loan. I still don't understand why he can sell something that isn't his? There is nothing stated in the divorce decree that says if I am late then he can sell my house?

 

[LdiJ]

I actually am in the process of a refi or loan modification. I have become employed again after losing my job last fall. The two late payments, after ten years of being on time, haven't affected my credit. My issue is that in the divorce decree there is nothing stated that I had to get him off the loan. I actually thought that by sending the mortgage company the divorce decree and quit claim deed were enough to take him off. All of the loan documents come to only me, in my name, so I figured he was off the loan. I still don't understand why he can sell something that isn't his? There is nothing stated in the divorce decree that says if I am late then he can sell my house?

HE cannot sell your house. He also cannot force you to refinance. He can however go to court and ask the judge to either force you to sell or refinance. He has the right to go to court and try to get the judge to do that because he is still on your mortgage. Being on your mortgage affects his credit score and makes it difficult for him to get financing for himself. If your two late payments didn't effect YOUR credit, then they probably didn't effect his either. What is likely effecting his credit is the fact that he is on your mortgage at all.

A judge might decline to assist him because your divorce decree did not address the issue...a judge might not. Therefore its in your best interest to get him off the mortgage by a refi, if at all possible.

 

[nextwife]

"Credit" is not the same animal it was a few years ago. Many of the rules of what is OK and what isn't have changed considerably (cash out refi criteria, for example, electronic underwriting, the reliance on credit scores for both lending and insurance underwriting).

I suspect there will be many more cases in which judges will be asked to readdress open mortgages that were unaddressed years earlier because it was unrealized that today these would be so highly detrimental to the co-borrower.