Help in NJ !!

What is the name of your state (only U.S. law)? NJ

My ex and I have been divorced for 4 years now. He was to buy me out of the house. He didn't. Apparently he refied the house and didn't roll in my $50K. I'm still on the deed.
This is what I want to do- I want to file a quit claim and put a lien on the house for $50K. My lawyer says he's in contempt and that I should file a motion and even force a sale of the home.
I don't want to do that b/c we won't get enough for the house and he can't afford a new one.
What should I do?

Listen to your lawyer.

If you sign a quit claim, you lose any rights to the house or equity therein. In fact, signing a quit claim and a lien are sort of contradictory.

File for contempt. Since he owes you the money from a divorce, it will probably survive bankruptcy, so he can't get out of it that way. You might also file a lien, but DO NOT sign a quit claim.

When you file the motion for contempt, he will be ordered to pay (with the threat of jail time hanging over his head). You will only have to try to force a sale if he refuses to pay, so that's really the second thing to try - if he pays up, he won't lose the house.

If you are in title, and didn't "sign off" on any refinance, I cannot see how any lender would have closed and disbursed on a cash out refi or new HELOC! No title company would have insured such a loan.

Have you reviewed the new recorded mortgage from which he supposedly obtained this 50K?

nextwife said:

If you are in title, and didn't "sign off" on any refinance, I cannot see how any lender would have closed and disbursed on a cash out refi or new HELOC! No title company would have insured such a loan.

Have you reviewed the new recorded mortgage from which he supposedly obtained this 50K?

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Good point. If he forged her signature, then he's in even more trouble and she would have additional legal options (including, perhaps, going after the title company or bank).

mistoffolees said:

Good point. If he forged her signature, then he's in even more trouble and she would have additional legal options (including, perhaps, going after the title company or bank).

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Yes, but a notary public would have also needed to be "in on it" for his forgery to pass. A lender doesn't just let a party bring a presigned mortgage to closing. If presigned, it must be done in front of a notary. He certainly could not have pretended to be her to a notary!

That's what I aksed if she actually SAW any evidence he did this, or maybe he is just yanking her chain and telling her he did to get her to run around making much ado about something that never happened. Does she actually KNOW this was done?

You ever think he just refied for the amount of the mortage and NOT any cash? Then she would still not have her money and he would have the mortgage only in his name.

nextwife said:

Yes, but a notary public would have also needed to be "in on it" for his forgery to pass. A lender doesn't just let a party bring a presigned mortgage to closing. If presigned, it must be done in front of a notary. He certainly could not have pretended to be her to a notary!

That's what I aksed if she actually SAW any evidence he did this, or maybe he is just yanking her chain and telling her he did to get her to run around making much ado about something that never happened. Does she actually KNOW this was done?

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That's absolutely correct. It should have been done with a notary and appropriate ID. So if it WAS done, someone messed up big time and she might have some recourse.

That's not to say that ex might not be just yanking her chain.

mistoffolees said:

That's absolutely correct. It should have been done with a notary and appropriate ID. So if it WAS done, someone messed up big time and she might have some recourse.

That's not to say that ex might not be just yanking her chain.

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Which is WHY I asked exectly what mortgage documents she had seen, reviewed and knew existed.

Maybe the supposed 50K in equity was evaporated in the market drop and no longer existed by the time of refi?

My guess is that the house value was no longer sufficient to support a cash out refi of 50k over and above the current payoff. One can't get 50K in a refi if the property value isn't enough to allow it to be underwriten that high. The bank/mortgage company is not a party to the divorce and is not required to write a non-justifiable loan simply because she wants that much money out. They now MUST write a loan that leaves some equity in the property based on current values.

If that is not what happened, she needs to know who signed what, for how much, with whome, insured by whom (what title provider), and when.

If she has no clue exactly what happened, we certainly cannot give advise about it.

So, Cathy, what is a REALISTIC CURRENT market value, and what was the mortgage balance at refi?

nextwife said:

Which is WHY I asked exectly what mortgage documents she had seen, reviewed and knew existed.

Maybe the supposed 50K in equity was evaporated in the market drop and no longer existed by the time of refi?

My guess is that the house value was no longer sufficient to support a cash out refi of 50k over and above the current payoff. One can't get 50K in a refi if the property value isn't enough to allow it to be underwriten that high. The bank/mortgage company is not a party to the divorce and is not required to write a non-justifiable loan simply because she wants that much money out. They now MUST write a loan that leaves some equity in the property based on current values.

If that is not what happened, she needs to know who signed what, for how much, with whome, insured by whom (what title provider), and when.

If she has no clue exactly what happened, we certainly cannot give advise about it.

So, Cathy, what is a REALISTIC CURRENT market value, and what was the mortgage balance at refi?

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I agree that its very plausible that he simply could not refi for enough to cover the existing mortgage and her 50k. In fact, not just plausible but very likely.

However, what I don't understand is how the mortgage could have been refinanced without her being present at the closing for the refinance if she hasn't signed a quit claim deed. Maybe that's possible in other states, but its not possible in mine.

I am also a notary and there is NO WAY that I would ever notarize something that was signed before it got to me unless I knew the person's signature well enough to know that they signed it...IE I will notarize something that my boss leaves on my desk whether he is there or not because I KNOW his signature. I have irritated lots of people because I will make them sign a document AGAIN if they sign it before they ask me to notarize it.

nextwife said:

Which is WHY I asked exectly what mortgage documents she had seen, reviewed and knew existed.

Maybe the supposed 50K in equity was evaporated in the market drop and no longer existed by the time of refi?

My guess is that the house value was no longer sufficient to support a cash out refi of 50k over and above the current payoff. One can't get 50K in a refi if the property value isn't enough to allow it to be underwriten that high. The bank/mortgage company is not a party to the divorce and is not required to write a non-justifiable loan simply because she wants that much money out. They now MUST write a loan that leaves some equity in the property based on current values.

If that is not what happened, she needs to know who signed what, for how much, with whome, insured by whom (what title provider), and when.

If she has no clue exactly what happened, we certainly cannot give advise about it.

So, Cathy, what is a REALISTIC CURRENT market value, and what was the mortgage balance at refi?

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If the decree says he has to give her x% of the equity, then you would be right. HOWEVER, if the decree says that he has to give her $50 K, then it doesn't matter if it's underwater. They have to follow what the decree says.