The house that keeps giving...

[jaberle]

CA
Received a divorce in California in May 2006. Part of the agreement was that we both would receive one of the properties we owned. Each was responsible for all taxes, capital gains etc. We executed an Interspousal Transfer Deed transferring all right, title and interest in each others properties. I sold mine, bought a new house and moved on with life.
She has since lost her job and has been renting out her house which she did not change title on. She has been keeping the payments the renter is making and is not attempting to find employment because of the money coming in.

Am I really going to get screwed in this deal twice even after 3 years and 4 months. I found all this out this evening when running my credit report. Do I have a leg to stand on??

 

[LdiJ]

CA
Received a divorce in California in May 2006. Part of the agreement was that we both would receive one of the properties we owned. Each was responsible for all taxes, capital gains etc. We executed an Interspousal Transfer Deed transferring all right, title and interest in each others properties. I sold mine, bought a new house and moved on with life.
She has since lost her job and has been renting out her house which she did not change title on. She has been keeping the payments the renter is making and is not attempting to find employment because of the money coming in.

Am I really going to get screwed in this deal twice even after 3 years and 4 months. I found all this out this evening when running my credit report. Do I have a leg to stand on??

If you were both on the mortgage, and the mortgage still exists, yes, your credit is screwed....sorry. If the house was paid off, and its property taxes that is effecting your credit you might have some recourse.

The problem is that the mortgage company was not a party to your divorce. They are bound only by the mortgage contract.

 

[mistoffolees]

CA
Received a divorce in California in May 2006. Part of the agreement was that we both would receive one of the properties we owned. Each was responsible for all taxes, capital gains etc. We executed an Interspousal Transfer Deed transferring all right, title and interest in each others properties. I sold mine, bought a new house and moved on with life.
She has since lost her job and has been renting out her house which she did not change title on. She has been keeping the payments the renter is making and is not attempting to find employment because of the money coming in.

Am I really going to get screwed in this deal twice even after 3 years and 4 months. I found all this out this evening when running my credit report. Do I have a leg to stand on??

To other readers - for the 1,000th time:

DO NOT REMAIN ON AN EX'S MORTGAGE AFTER A DIVORCE. Both houses should have been refinanced after the divorce. If there's enough equity, it is often possible to simply have one name removed from the mortgage for a couple hundred dollars.

As for now, you have several options:
1. Contact the mortgage company with a copy of your divorce decree. It may not help, but they may have SOMETHING they can do to help.

2. Go back to court to get an order for the house to be sold to pay off the mortgage. At the same time, ask to be reimbursed for your legal expenses. You can also ask to be reimbursed for the damage to your credit rating, but it will be hard to put a value on that, so the judge may just drop that request (it doesn't hurt to ask, though).

 

[jaberle]

Thanks to both for the response. Another thought...can I, since I am still on the mortgage, put the house up for sale and ask a judge to require her to sign the necessary documents? I know this may sound like I'm reaching, but I am.

Should I inform the renters she has in there what is happening so that they don't end up living there thinking they too are secure? At this point, she is living off of the rent they pay her...

 

[mistoffolees]

Thanks to both for the response. Another thought...can I, since I am still on the mortgage, put the house up for sale and ask a judge to require her to sign the necessary documents? I know this may sound like I'm reaching, but I am.

No. She was awarded the house and you can not just put it up for sale. You need to go to court to ask for it to be sold (actually, I would ask for her to refinance in her name within 30 days or sell the house, but since she probably can't refinance, it will amount to the same thing).

Should I inform the renters she has in there what is happening so that they don't end up living there thinking they too are secure? At this point, she is living off of the rent they pay her...

No. From a legal standpoint, you'd open yourself up to tortuous interference (interfering with a contractual relationship). From a rational standpoint, you wouldn't gain anything from it and she'd starve.

 

[jaberle]

Thanks again...You've been a big help

 

[jaberle]

Do I need to retain an attorney to ask the judge to have her sell the house. If not, how do I go about it? and what would the process be called?