what are my options

[traybaby64]

What is the name of your state (only U.S. law)? Texas. Got a divorce 3 years ago and exwife will not refinance the home awarded to her in the divorce.She is not on the home loan and she must refinance to get the home out of my name.In the mean time she is screwing up my credit with slow pays.I called the morgage company to have it put in her name sence the court awarded her the home in the divorce. They informed me that it did not care what any court awarded I was the only person liable for the home loan. What are my options.

 

[mistoffolees]

What is the name of your state (only U.S. law)? Texas. Got a divorce 3 years ago and exwife will not refinance the home awarded to her in the divorce.She is not on the home loan and she must refinance to get the home out of my name.In the mean time she is screwing up my credit with slow pays.I called the morgage company to have it put in her name sence the court awarded her the home in the divorce. They informed me that it did not care what any court awarded I was the only person liable for the home loan. What are my options.

The mortgage company is correct. Your name is on the loan and the divorce does not absolve you of your obligations.

What you should have done is had the divorce decree specifically state that she had to refinance within xxx days or the house needed to be sold. Since it's too late for that, you can try to convince a judge to order her to refinance, but they might not do it, particularly if she is only a little slow, but not in default. They might give her a reprimand, instead.

What is the loan value and what is the home worth (realistically)? If there is sufficient equity (20% or so) and she has sufficient income to refinance, it will probably be to her benefit to do so. First, interest rates are lower than they were 3 years ago. Second, depending on the wording of your decree, she may not be able to use the mortgage deduction if the loan is in your name. The key is that she can only use the deduction if she is legally liable for the debt. So if your decree doesn't explicitly say that she has to pay the mortgage, she might not be able to use it. Right, Ldij?

 

[traybaby64]

What are my options

The home balance is 79k and is worth 130k. I agree this is the time to refinance but she is being the mean exwife person and is telling me to take a hike and if I push her any more she will make even more slow pays. The decree states if she was to devault on the loan at any time I could take the house back. But like you said she is only making slow pays. If a court awards her with the house and its not in her name can I evict her and sell the the house.

 

[LdiJ]

The home balance is 79k and is worth 130k. I agree this is the time to refinance but she is being the mean exwife person and is telling me to take a hike and if I push her any more she will make even more slow pays. The decree states if she was to devault on the loan at any time I could take the house back. But like you said she is only making slow pays. If a court awards her with the house and its not in her name can I evict her and sell the the house.

No, you cannot evict her from the house and sell it. Per the divorce decree the house belongs to her.

The only thing that you can do is try to get the judge to order her to refinance now...and to give her some time frame to accomplish it or the house goes on the market.

However, based on the way your divorce decree was worded (that you can take the house back if she defaults) seems to indicate that it was understood that she was not going to be refinancing. Therefore a judge may not force her to refinance now.

 

[traybaby64]

I get off work at 7pm and I will look at the wording and post it tonight.But its hard to belive that if someones name is not on a piece of property they have that much power over it.

 

[mistoffolees]

I get off work at 7pm and I will look at the wording and post it tonight.But its hard to belive that if someones name is not on a piece of property they have that much power over it.

Actually, if the court awarded her the house, then her name IS on the property. It's the mortgage which doesn't have her name on it.

 

[mistoffolees]

The home balance is 79k and is worth 130k.

Then if she has a decent income and credit rating, she should be able to refinance.

If she is regularly late on her payments and it is damaging your credit, you can go to court to ask the judge to have her refinance or sell it. No guarantees, but it may be worth a shot. Considering that it will likely be to her benefit to refinance, anyway, it's not asking all that much.

 

[traybaby64]

The actual wording is:
It is ordered and decreed that the wife, Rhonda, shall pay, as a part of the
division of the estate of the parties, and shall indemnify and hold thehusband and his property harmless from any failure to so discharge, these items
The balance due including principal, interest, tax, and insurance escrow, on the promissory note excuted by Tracy and Rhonda, in the original principal sum of $$$$$$$$ dated Oct 11,2004 payable to Secure Mortgage co, and secured by deed of trust on the real property awarded in this decree to the wife which is recorded at volume 219 page 29 deed of trust records of Harris County Texas

 

[LdiJ]

The actual wording is:
It is ordered and decreed that the wife, Rhonda, shall pay, as a part of the
division of the estate of the parties, and shall indemnify and hold thehusband and his property harmless from any failure to so discharge, these items
The balance due including principal, interest, tax, and insurance escrow, on the promissory note excuted by Tracy and Rhonda, in the original principal sum of $$$$$$$$ dated Oct 11,2004 payable to Secure Mortgage co, and secured by deed of trust on the real property awarded in this decree to the wife which is recorded at volume 219 page 29 deed of trust records of Harris County Texas

Then she is NOT required to refinance under the divorce decree. You can certainly try to get a judge to order her to refinance now, but no one can guarantee the outcome.

The property also definitely belongs to her now. There is also nothing in there about you being able to take the property back if she defaults on the loan.

 

[mistoffolees]

The actual wording is:
It is ordered and decreed that the wife, Rhonda, shall pay, as a part of the
division of the estate of the parties, and shall indemnify and hold thehusband and his property harmless from any failure to so discharge, these items
The balance due including principal, interest, tax, and insurance escrow, on the promissory note excuted by Tracy and Rhonda, in the original principal sum of $$$$$$$$ dated Oct 11,2004 payable to Secure Mortgage co, and secured by deed of trust on the real property awarded in this decree to the wife which is recorded at volume 219 page 29 deed of trust records of Harris County Texas

Ldij, is this sufficient legalese that she can deduct the mortgage interest? It looks like she's now legally obligated and can therefore deduct it. That gives her less incentive to refinance.

For OP, the hold harmless clause is your only argument remaining. If she has damaged your credit enough that you can't buy a home, then you could argue that she needs to compensate you for that damage to your credit. The easiest way for her to do it would be for her to refinance her home. I don't know if a court would buy it, but that looks like your last bit of leverage.

 

[LdiJ]

Ldij, is this sufficient legalese that she can deduct the mortgage interest? It looks like she's now legally obligated and can therefore deduct it. That gives her less incentive to refinance.

For OP, the hold harmless clause is your only argument remaining. If she has damaged your credit enough that you can't buy a home, then you could argue that she needs to compensate you for that damage to your credit. The easiest way for her to do it would be for her to refinance her home. I don't know if a court would buy it, but that looks like your last bit of leverage.

Yes, I think that its sufficient legalese to allow her to deduct the mortgage interest. The order makes her obligated to pay it. The two tests are 1) Are you obligated to pay it? and 2) Do you actually pay it?