Affects of co-owner

[mmckinnon3]

What is the name of your state? Florida.

Last April I bought a home and a few months later my wife decided to leave me. In our divorce decree it states that we are to sell the home and until the time it sells I am responsible for the mortgage payment and upkeep of the home. Both of our names are on the deed and the mortgage. The house has depreciated about $30k since we bought it. My question is...If I have to short sale the home or even foreclose does she have grounds to sue me because it will harm her credit as well? Or can she simple prove to the credit agencies that she was not responsible to make the payments and prevent her credit from being destroyed?

[FlyingRon]

She can sue you. If she was smart and you weren't making the payments, she would make them and then get a judgment against you.

Notwithstanding the court order, she agreed to make the payments and the lender is free to destroy her credit if those payments are not made.

You can't "foreclose", lenders foreclose. You just violate your contracts, and the court order by allowing foreclosure to occur.

[mmckinnon3]

If we get a quit claim deed would she be able to clear her name with creditors by proving to them that her name was no longer on the deed and she wasn't responsible for the home any longer?

[mmckinnon3]

I do have one other question.

[mmckinnon3]

Sorry about that last post. Basically here's my dilemma. I currently owe about $206k on the home. We listed it back in September for $210k, knowing that it was a bit pricey. I wanted to list it at $190k but my ex-wife refused. Since that time the value of the home has dropped to about $175k. I know that she will refuse to allow me to sell it for that amount, but if there is a way that I can keep her credit from being destroyed then I know she won't care what happens to the house, as long as she also doesn't have to split 1/2 of a $50k loss with me. That's where the idea of a quit-claim deed and a short sale came into play. I can no longer afford to make the payments on this house. If I stop making payments and attempt a short sale, selling the home for $170k - $175k can she somehow show the credit bureau that it was my responsibility to make payments?

I'm sure I could take her to court and force her to allow me to sell the home at a lower price but I know that would cost me money I don't have.

Does anyone have any suggestions? The scenario I described in the first paragraph of this post is what I would prefer to do. Does this seem viable?

[FlyingRon]

Quit claim gets rid of ownership, it has no bearing on debt responsibility.

Nothing you say has changed what I say. You must continue making the payments until the house is sold. Any missing of payments will impact both of your credit. If she's not acting in good faith on the sale of the house, you'll have to go back to the divorce court.

[mmckinnon3]

Well that sucks. Thank you very much for your help!