Purposefully Not Paying the Mortgage

[kimberlyhadu]

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

My husband and I divorced 2 years ago. We did not sell our house because we are "upside down" in the mortgage. We had an agreement that he would find someone to help cover the cost of living in our house and then when we could sell it for a profit we would.

He has since remarried and he wanted me to sign over the house to him because he claims his new wife does not want to give him money towards the mortgage while my name is still on the deed. I told him too bad, we have an agreement. He has since stopped making payments on the mortgage and has now damaged my great credit rating. He claims that he is doing this so that he can claim bankruptcy and refinance through a Gov't loan that will save him money but he wants my name off of the mortgage. He also claims that his lawyer told him if I sign over the deed to him, there will be no damage to my credit rating. How is that possible?? I was sent a threatening letter from the bank saying that I am delinquent in my payments. Also because he is not paying the mortgage, he has plenty of money for a lawyer and told me that his lawyer told him that I am going to be responsible for half of the mortgage if I DON'T sign over the deed.

My feelings are that since he is purposely screwing up my credit and he is doing this because his new wife doesn't like the agreement we had, I should just let the bank come take the house if he doesn't want to pay the mortgage. But I'm worried that I can have some kind of financial settlement against me if I do nothing.

Can someone help me figure out what I should do in this situation?

 

[LdiJ]

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

My husband and I divorced 2 years ago. We did not sell our house because we are "upside down" in the mortgage. We had an agreement that he would find someone to help cover the cost of living in our house and then when we could sell it for a profit we would.

He has since remarried and he wanted me to sign over the house to him because he claims his new wife does not want to give him money towards the mortgage while my name is still on the deed. I told him too bad, we have an agreement. He has since stopped making payments on the mortgage and has now damaged my great credit rating. He claims that he is doing this so that he can claim bankruptcy and refinance through a Gov't loan that will save him money but he wants my name off of the mortgage. He also claims that his lawyer told him if I sign over the deed to him, there will be no damage to my credit rating. How is that possible?? I was sent a threatening letter from the bank saying that I am delinquent in my payments. Also because he is not paying the mortgage, he has plenty of money for a lawyer and told me that his lawyer told him that I am going to be responsible for half of the mortgage if I DON'T sign over the deed.

My feelings are that since he is purposely screwing up my credit and he is doing this because his new wife doesn't like the agreement we had, I should just let the bank come take the house if he doesn't want to pay the mortgage. But I'm worried that I can have some kind of financial settlement against me if I do nothing.

Can someone help me figure out what I should do in this situation?

The only viable thing that you can do is take him back to court for contempt for not honoring the agreement. That may or may not solve the problem, but certainly if you do nothing at all, your credit is going to be tanked.

By the way...he flat out lied to you about a signing over the deed to him. That will NOT remove you from the mortgage.

 

[Ohiogal]

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

My husband and I divorced 2 years ago. We did not sell our house because we are "upside down" in the mortgage. We had an agreement that he would find someone to help cover the cost of living in our house and then when we could sell it for a profit we would.

He has since remarried and he wanted me to sign over the house to him because he claims his new wife does not want to give him money towards the mortgage while my name is still on the deed. I told him too bad, we have an agreement. He has since stopped making payments on the mortgage and has now damaged my great credit rating. He claims that he is doing this so that he can claim bankruptcy and refinance through a Gov't loan that will save him money but he wants my name off of the mortgage. He also claims that his lawyer told him if I sign over the deed to him, there will be no damage to my credit rating. How is that possible?? I was sent a threatening letter from the bank saying that I am delinquent in my payments. Also because he is not paying the mortgage, he has plenty of money for a lawyer and told me that his lawyer told him that I am going to be responsible for half of the mortgage if I DON'T sign over the deed.

My feelings are that since he is purposely screwing up my credit and he is doing this because his new wife doesn't like the agreement we had, I should just let the bank come take the house if he doesn't want to pay the mortgage. But I'm worried that I can have some kind of financial settlement against me if I do nothing.

Can someone help me figure out what I should do in this situation?

What does the court order state regarding the house? If you are on the mortgage, then YOU are partially responsible for screwing up your credit by not paying the mortgage. Yes you can end up with a financial settlement against you if you do not pay the mortgage and the home is foreclosed. That is regardless of any court order in your divorce OR side agreements that may be had. The bank is NOT a party to those things and doesn't care about anything but the contract YOU signed with them.

 

[Ohiogal]

The only viable thing that you can do is take him back to court for contempt for not honoring the agreement. That may or may not solve the problem, but certainly if you do nothing at all, your credit is going to be tanked.

By the way...he flat out lied to you about a signing over the deed to him. That will NOT remove you from the mortgage.

There is no contempt if there is nothing other than an "agreement". No court order means no contempt. She never said it was an order or what order existed regarding the house.

 

[kimberlyhadu]

The only viable thing that you can do is take him back to court for contempt for not honoring the agreement. That may or may not solve the problem, but certainly if you do nothing at all, your credit is going to be tanked.

By the way...he flat out lied to you about a signing over the deed to him. That will NOT remove you from the mortgage.

Thanks for the reply.

...so my credit is tanked now anyway, right? If I just let the bank come take the house (which I don't believe he would actually do that. I believe he is just letting the mortgage be in arrears to scare me into signing over the deed) is it really that much worse of a hit to my credit than it has already has been by him not paying the mortgage for I don't even know how many months?

 

[Ohiogal]

Thanks for the reply.

...so my credit is tanked now anyway, right? If I just let the bank come take the house (which I don't believe he would actually do that. I believe he is just letting the mortgage be in arrears to scare me into signing over the deed) is it really that much worse of a hit to my credit than it has already has been by him not paying the mortgage for I don't even know how many months?

And until he refinanced it -- you really should have been making sure the mortgage was paid.

 

[kimberlyhadu]

I guess I should have posted in the "Bankruptcy" forum then.

I'm not at all familiar with bankruptcy/foreclosure.

So my real question now is: what kind of damages could I suffer going through something like this? If he doesn't pay the mortgage, and the bank comes to take the house, will they simply take the house, or will they take the house AND I have to pay a sum of money?

 

[kimberlyhadu]

And until he refinanced it -- you really should have been making sure the mortgage was paid.

I don't earn enough money to pay for my current residence AND the house he is living in (that he was supposed to make the mortgage payments on). Yes I see that I shouldn't have trusted him, but it's too late for that now. Now I'm just trying to avoid having to pay back the bank. I'm willing to let them come take the house as long as I don't have to pay any sum of money.

 

[Ohiogal]

I don't earn enough money to pay for my current residence AND the house he is living in (that he was supposed to make the mortgage payments on). Yes I see that I shouldn't have trusted him, but it's too late for that now. Now I'm just trying to avoid having to pay back the bank. I'm willing to let them come take the house as long as I don't have to pay any sum of money.

You never answered what the COURT ORDER stated regarding the house and mortgage. If they take the house you can very well have to pay the deficit on the house. Unless you do declare Chapter 7 bankruptcy.

 

[kimberlyhadu]

You never answered what the COURT ORDER stated regarding the house and mortgage. If they take the house you can very well have to pay the deficit on the house. Unless you do declare Chapter 7 bankruptcy.

He says he will refinance and pay off the mortgage if I take my name off the deed.

If I sign over the deed to him, is there anyway he could finagle the system so that he gets to keep the house AND the bank is still coming after me for the delinquent funds?

 

[Zigner]

He says he will refinance and pay off the mortgage if I take my name off the deed.

If I sign over the deed to him, is there anyway he could finagle the system so that he gets to keep the house AND the bank is still coming after me for the delinquent funds?

Really? Did you not even skim the prior responses? This question was answered but I'll do it again. If you sign the deed, of course he can just sit on it. YOU owe the bank per YOUR contract with the bank. How do you expect to force him to refi if you've already signed away the deed?

Now, why don't you answer the question?

We had an agreement that he would find someone to help cover the cost of living in our house and then when we could sell it for a profit we would.

Is there a COURT ORDER about this?

 

[Ohiogal]

Really? Did you not even skim the prior responses? This question was answered but I'll do it again. If you sign the deed, of course he can just sit on it. YOU owe the bank per YOUR contract with the bank. How do you expect to force him to refi if you've already signed away the deed?

Now, why don't you answer the question? Is there a COURT ORDER about this?

That headbanging icon is really really necessary.

 

[kimberlyhadu]

Really? Did you not even skim the prior responses? This question was answered but I'll do it again. If you sign the deed, of course he can just sit on it. YOU owe the bank per YOUR contract with the bank. How do you expect to force him to refi if you've already signed away the deed?

Now, why don't you answer the question? Is there a COURT ORDER about this?

Sorry ...I'm confused by the question: do you mean is there a court order in the divorce documents that says he is responsible for paying the mortgage?

 

[Zigner]

Sorry ...I'm confused by the question: do you mean is there a court order in the divorce documents that says he is responsible for paying the mortgage?

Yes, you refer to an "agreement" - our question is this: Is your "agreement" actually ordered by the court? Is it a part of your divorce decree? Or, is it something that you two simply agreed to "on the side"?

 

[Ohiogal]

Sorry ...I'm confused by the question: do you mean is there a court order in the divorce documents that says he is responsible for paying the mortgage?

What does the court order state -- word for word (you can redact names and addresses) about who is awarded the house and who is responsible for the payment of the mortgage and what is to be done with the home?