Time limit is almost up to fulfill property settlement agreement

[thelizzy]

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

My divorce was finalized on July 13, 2009. As per the divorce decree, the house which is jointly mortgaged, is to be refinanced by my ex-husband into his name, or, in this case, him and his new baby mama, who I assume is living there, or else it is to be sold.

If he does not refinance by July 13, 2010, the decree says that the house will immediately be put up for sale. That's all well and good, but the house is worth less than what we paid for it, which is why the ex has not refinanced into his name yet. He said he needed a year to get the money together. He did not reply to my email reminding him of the upcoming deadline.

If the house IS put up for sale, and it is a short sale (which I assume it most likely will be), I would like to make sure that I am protected legally from owing anything on the balance of the mortgage. The ex has been paying, albeit sporadically, the mortgage, and I have relinquished all rights to the house, although my name is still on the mortgage and the deed. He was late on at least two mortgage payments in the past year, which, at my last understanding, the mortgage had to be paid on time for a year in order for the refinancing to be approved.

Bottom line: how do I protect myself from owing anything on a house that I have not lived in, nor paid for in over two years (and lived in for only two)?

 

[ecmst12]

You can't. Your name is on the mortgage, you are on the hook until the refi is complete. It may be better for you to give your ex an extension for the refinance rather then take the credit hit of a short sale.

 

[thelizzy]

You can't. Your name is on the mortgage, you are on the hook until the refi is complete. It may be better for you to give your ex an extension for the refinance rather then take the credit hit of a short sale.

I'm not sure how much of a hit it would be, as my credit is already in the toilet from the divorce and having to take every bill with my name on it + no spousal support.

ETA: Additionally, I am really not comfortable remaining on the mortgage for another year while he gets his ducks in a row and pays the mortgage on time for a year, if he'll even do that, especially with his baby mama and child living in a house that's in MY name.

 

[mistoffolees]

I'm not sure how much of a hit it would be, as my credit is already in the toilet from the divorce and having to take every bill with my name on it + no spousal support.

ETA: Additionally, I am really not comfortable remaining on the mortgage for another year while he gets his ducks in a row and pays the mortgage on time for a year, if he'll even do that, especially with his baby mama and child living in a house that's in MY name.

Then put the house on the market. If he won't comply, go to court to get an order for him to comply. If there is a short sale, you will be responsible to the mortgage company to pay the balance, although you may be able to make your ex reimburse you (or maybe not, depending on how your decree is worded).

It's ultimately your choice, but even if you put it on the market July 13, it's likely to take months to sell and you're going to be out a significant amount of money. Alternatively, it sounds like he is working to accumulate the money to refinance so that you can walk away clear. While you don't want to do it, it really may be in your best interest to cooperate in this case.

 

[nextwife]

If the mortgage has both your names, the lender to whom you and he owe the balance will not necessarily agree to let you off the hook. You are just as responsible to your lender as he is, and "missed payments" are considered just as much your responsibility as his, because the bank gave the loan based upon BOTH of you contributing and agreeing to repay them. You moving away and not being in a relationship with him has ZERO bearing on your joint responsibility to your mortgage lender. You and he can, between you, agree to whatever you want about who pays, but no third party agreement impacts your prior agreement to repay the loan in full.