Conflicting divorce settlement and Bank Debt

[MrsSask]

3 years ago received divorce settlement in which it expressly stated
the house to be awarded to ex-husband and I was not
responsible for the bank debt or taxes or anything to do
with this house. 2 years later ex-husband goes bankrupt
and does not pay the mortgage. Now the Bank is demanding
I pay $33,500 outstanding on the house. I do not have
the money, what should I do.
My divorce lawyer never told me to take my name of the
house documents and I thought I was covered by the divorce
decree.

 

[TBTN]

please tell us what your state you are from.

 

[JETX]

It really doesn't matter what state you are in.

Here is the problem....
Both of you signed the agreement for the house, and that is what the lender relied on when he made the loan... both of you (as a couple) being responsible for the debt. The divorce was only between you and your 'ex', and has no inherent bearing on the loan agreement that you entered with the mortgage company. And since neither of you made arrangements to remove your name from this liability, you are both still responsible for the debt. [To some extent, this is not unlike being a co-signer on a note. The primary (your 'ex') has defaulted on the note and now they are coming to you for repayment.]

I would suggest that you talk with an attorney to see what would be needed for you to take possession of the property and to either live there, rent it out, or to sell it. If you take equity value, you may have to pay some of its value to your 'ex' (since he 'owns' it per the agreement). And if you have any losses, you could sue your 'ex' for his breach of the agreement.