Assume mortgage @ divorce

[3statesmom]

What is the name of your state? Florida

My fiance divorced 2 years ago; he quit-claimed the deed of their jointly owned home to his ex-wife, but failed to specify in the divorce decree that she must assume the loan solely in her name. So now he has no legal right to the property, but his name remains on the loan. I have 2 questions:
1. Can he force her to assume the loan, or re-finance solely in her name?
2. If not, since his divorce states that he is to be held 'harmless' from liabilty on the property, will he be able to finance a new home on a new mortgage without penalty?
And I guess a 3rd question would be, why did the bank allow him to sign off on the deed, without insisting upon a re-fi or assumption?

Any help or advice would be greatly appreciated.

[seniorjudge]

Originally Posted by 3statesmom

What is the name of your state? Florida

My fiance divorced 2 years ago; he quit-claimed the deed of their jointly owned home to his ex-wife, but failed to specify in the divorce decree that she must assume the loan solely in her name. So now he has no legal right to the property, but his name remains on the loan. I have 2 questions:
1. Can he force her to assume the loan, or re-finance solely in her name?
2. If not, since his divorce states that he is to be held 'harmless' from liabilty on the property, will he be able to finance a new home on a new mortgage without penalty?
And I guess a 3rd question would be, why did the bank allow him to sign off on the deed, without insisting upon a re-fi or assumption?

Any help or advice would be greatly appreciated.

Q: 1. Can he force her to assume the loan, or re-finance solely in her name?

A: No; he no longer has any interest in the real estate but he is still liable for the mortgage.


Q: 2. If not, since his divorce states that he is to be held 'harmless' from liabilty on the property, will he be able to finance a new home on a new mortgage without penalty?

A: Yes, if he can find a mortgage lender who will loan him money under the circumstances.


Q: And I guess a 3rd question would be, why did the bank allow him to sign off on the deed, without insisting upon a re-fi or assumption?

A: I do not know; maybe the bank doesn't even know that it happened.