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Application for HELOC after judgment

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mr. spock

Junior Member
What is the name of your state (only U.S. law)? IL
My wife and I had a trial for our divorce. Our house was ordered to be sold. It's on the market but it has been on the market for a long time so I don't expect it to be sold soon since it's 1 mil +. In the meantime, I need cash to pay off my lawyer. I was thinking of getting a HELOC to do that. My name is on the mortgage and the title. She is paying the mortgage as she has occupancy of the house, which is what the judgment says. There is nothing in the judgment which says I can't take out a loan on the house. Can I do this? What kinds of issues should I be thinking about? What if we short-sell? Thanks for your help. She took out a HELOC during the divorce without my knowledge and it wasn't held against her so I'm guessing this won't be held against me post-judge.
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? IL
My wife and I had a trial for our divorce. Our house was ordered to be sold. It's on the market but it has been on the market for a long time so I don't expect it to be sold soon since it's 1 mil +. In the meantime, I need cash to pay off my lawyer. I was thinking of getting a HELOC to do that. My name is on the mortgage and the title. She is paying the mortgage as she has occupancy of the house, which is what the judgment says. There is nothing in the judgment which says I can't take out a loan on the house. Can I do this? What kinds of issues should I be thinking about? What if we short-sell? Thanks for your help. She took out a HELOC during the divorce without my knowledge and it wasn't held against her so I'm guessing this won't be held against me post-judge.
Taking out a loan post judgment is ENTIRELY different than taking one out pre-judgment. I absolutely would NOT encumber the house more than its already encumbered. That could go very very badly for you.
 

Ohiogal

Queen Bee
What is the name of your state (only U.S. law)? IL
My wife and I had a trial for our divorce. Our house was ordered to be sold. It's on the market but it has been on the market for a long time so I don't expect it to be sold soon since it's 1 mil +. In the meantime, I need cash to pay off my lawyer. I was thinking of getting a HELOC to do that. My name is on the mortgage and the title. She is paying the mortgage as she has occupancy of the house, which is what the judgment says. There is nothing in the judgment which says I can't take out a loan on the house. Can I do this? What kinds of issues should I be thinking about? What if we short-sell? Thanks for your help. She took out a HELOC during the divorce without my knowledge and it wasn't held against her so I'm guessing this won't be held against me post-judge.
Do you have a divorce decree? That should address this. You cannot encumber her in anyway. If you took out a HELOC you would be found in contempt (possibly) by the divorce court. You would also lose this money off any part of the home that you might collect against as you are encumbering the home. I would recommend you not do so. Talk to your attorney regarding this.
 

mr. spock

Junior Member
Do you have a divorce decree? That should address this. You cannot encumber her in anyway. If you took out a HELOC you would be found in contempt (possibly) by the divorce court. You would also lose this money off any part of the home that you might collect against as you are encumbering the home. I would recommend you not do so. Talk to your attorney regarding this.
Thanks. Yes, there is a divorce judgment. There is no wording about not taking out anymore debt on this asset. I was thinking that this debt would be my responsibility and I would take it out of my 50% which I would get when the house sold.

I thought since the judgment is silent on this (and on a lot which is so surprising considering the complexity of the case, I thought). We are in the middle of a reconsideration with judge so I wouldn't do it until after that is done in a month.
 

LdiJ

Senior Member
Thanks. Yes, there is a divorce judgment. There is no wording about not taking out anymore debt on this asset. I was thinking that this debt would be my responsibility and I would take it out of my 50% which I would get when the house sold.

I thought since the judgment is silent on this (and on a lot which is so surprising considering the complexity of the case, I thought). We are in the middle of a reconsideration with judge so I wouldn't do it until after that is done in a month.
Just because a divorce decree does not say that you cannot further encumber an asset, does NOT mean that you can. You really need to discuss this with your attorney before you do something that could get you in a world of hurt. I am dead serious on this one. If you were my ex and did something like that, I would do my best to trample you in court.
 

Bali Hai

Senior Member
Just because a divorce decree does not say that you cannot further encumber an asset, does NOT mean that you can. You really need to discuss this with your attorney before you do something that could get you in a world of hurt. I am dead serious on this one. If you were my ex and did something like that, I would do my best to trample you in court.
OP states that he and the other party are in the middle of a reconsideration with the judge and would not do anything until approved. If you trampled him in court after that, the judge might consider you a wild and out of control mustang.
 

LdiJ

Senior Member
OP states that he and the other party are in the middle of a reconsideration with the judge and would not do anything until approved. If you trampled him in court after that, the judge might consider you a wild and out of control mustang.
The reconsideration is a bit irrelevant since a request to further encumber the house is clearly not a part of that reconsideration.
 

Bali Hai

Senior Member
The reconsideration is a bit irrelevant since a request to further encumber the house is clearly not a part of that reconsideration.
As long as he is responsible to pay back his equity loan, what is the big stink about, other than he is a man and needs a good trampling?
 

LdiJ

Senior Member
As long as he is responsible to pay back his equity loan, what is the big stink about, other than he is a man and needs a good trampling?
Any woman that would do that after a property settlement would equally deserve to be trampled. This has nothing to do with gender and everything to do with inappropriately encumbering assets.
 

Bali Hai

Senior Member
Any woman that would do that after a property settlement would equally deserve to be trampled. This has nothing to do with gender and everything to do with inappropriately encumbering assets.
The fact is that the wife encumbered the property inappropriately DURING DIVORCE PROCEEDINGS and was clearly in contempt and allowed to get away with it. But since she was allowed to get away with that, OP needs to be trampled?
 

Zigner

Senior Member, Non-Attorney
The fact is that the wife encumbered the property inappropriately DURING DIVORCE PROCEEDINGS and was clearly in contempt and allowed to get away with it. But since she was allowed to get away with that, OP needs to be trampled?
You know nothing of what happened other than what the OP posted. Your assumptions are baseless.
 

LdiJ

Senior Member
The fact is that the wife encumbered the property inappropriately DURING DIVORCE PROCEEDINGS and was clearly in contempt and allowed to get away with it. But since she was allowed to get away with that, OP needs to be trampled?
If that is true, then I will repeat what every parent tells their child "two wrongs don't make a right".
 

Bali Hai

Senior Member
If that is true, then I will repeat what every parent tells their child "two wrongs don't make a right".
If everyone concerned agrees to what OP would like to do, would it be wrong? I know your position is that it's wrong and OP would get a good trampling. You've made that abundantly clear. However, if the judge and the other party agree wouldn't it be right?
 

LdiJ

Senior Member
If everyone concerned agrees to what OP would like to do, would it be wrong? I know your position is that it's wrong and OP would get a good trampling. You've made that abundantly clear. However, if the judge and the other party agree wouldn't it be right?
He wouldn't even need the judge to agree if the other party agrees. However, what other party would agree to such a thing?
 

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