X not complying with court order

[nbmd]

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

Divorce was final in February, 2014. I agreed to give up claim to the house we built together in order to make it speedy. She was ordered by the court to refinance in order to remove my name from the mortgage and deed. Unfortunately, the court gave her no deadline. My interpretation of a judge's order would be. "Do it now." Her interpretation was, "Do it when you feel like it." Nine months later, November of 2014, I filed a Petition for Contempt claiming she had ignored the court order. The judge agreed that there should have been a deadline assigned, and assigned April 16, 2015. (The hearing was on January 13. He gave her an additional 90 days.)

This deadline is here, and I have not heard from her RE refinance. I emailed her 2 days ago, asking if she had made progress. No response. I checked the mortgage, and my name is still on it, with yet another late payment this month. She has ruined her credit, (and mine) by being late on the mortgage, etc. I am preparing another Petition for Contempt. I assume she is no position to refinance the house on her own, or she would have done it already. I personally don't care whether she sells it or not. I just need my name off the mortgage so I can move on with my financial life. It is on property gifted by her family, surrounded by her sisters, and she most likely desperately wants to keep it. I want to afford her the opportunity to keep it, if that's what she wishes. However I wish to be compensated for the inconvenience. It is my belief that she has the resources to get this done, either with help from family or her new husband, however she is too irresponsible to follow through with it.

My question: Is it legal for me to approach her with a deal to pay me a monthly amount until she refinances, or would that be some sort of blackmail or extortion? I also plan on demanding my name be on the insurance policy until such time as my name is off the mortgage.

Additional question: What is the status of the mortgage interest deduction? Do I have a claim to it, since my name is on the mortgage, regardless of who paid?

 

[STEPHAN]

Is there equity in the house?

 

[nbmd]

Most likely no equity. Very recently it was underwater by $50k, though zillow.com shows increasing value to near even.

 

[Zigner]

Most likely no equity. Very recently it was underwater by $50k, though zillow.com shows increasing value to near even.

How do you expect her to refi?

Technically she's in contempt of the order...but expect that she'll be given more time.

If you want to be sure that your credit is not adversely affected by late payments, then you would need to make the payments and seek reimbursement from her.

 

[STEPHAN]

Very recently it was underwater by $50k, though zillow.com shows increasing value to near even.

Don't count on Zillow.

A court order that she can not comply to is worthless. Lets face it, the court can not order the bank.

 

[nbmd]

I don't (expect her to re-fi). I don't know what to expect. All I know is that without goading, she does NOTHING. She did not apply for or seek refinancing as of the Contempt hearing, and I have no idea whether she has since.

My question is, if I write her a letter to the effect of, "I understand that you do not wish to refinance at this time, or are unable due to market conditions. As an alternative, I suggest that we sign an agreement that you pay me $xxx per month until you secure refinancing, that my name be added back to the homeowner's insurance policy, and that I be entitled to one half the home mortgage tax deduction." Is that OK? Am I doing anything illegal?

 

[Zigner]

I don't (expect her to re-fi). I don't know what to expect. All I know is that without goading, she does NOTHING. She did not apply for or seek refinancing as of the Contempt hearing, and I have no idea whether she has since.

My question is, if I write her a letter to the effect of, "I understand that you do not wish to refinance at this time, or are unable due to market conditions. As an alternative, I suggest that we sign an agreement that you pay me $xxx per month until you secure refinancing, that my name be added back to the homeowner's insurance policy, and that I be entitled to one half the home mortgage tax deduction." Is that OK? Am I doing anything illegal?

Are you paying the taxes? If not, then you cannot claim the deduction.

Beyond that, her attorney is never going to advise her to sign that.

 

[Ohiogal]

I don't (expect her to re-fi). I don't know what to expect. All I know is that without goading, she does NOTHING. She did not apply for or seek refinancing as of the Contempt hearing, and I have no idea whether she has since.

My question is, if I write her a letter to the effect of, "I understand that you do not wish to refinance at this time, or are unable due to market conditions. As an alternative, I suggest that we sign an agreement that you pay me $xxx per month until you secure refinancing, that my name be added back to the homeowner's insurance policy, and that I be entitled to one half the home mortgage tax deduction." Is that OK? Am I doing anything illegal?

She doesn't have to pay you ANYTHING. Nor add you to the insurance policy nor give you one half the tax deduction -- especially since YOU are not paying a DIME OF IT. You are therefore not entitled to it.

 

[nbmd]

Are you paying the taxes? If not, then you cannot claim the deduction.

I'm paying my income taxes, sure. Is that what you mean? Real estate taxes are added to the mortgage check and put in escrow.

 

[Zigner]

She doesn't have to pay you ANYTHING. Nor add you to the insurance policy nor give you one half the tax deduction -- especially since YOU are not paying a DIME OF IT. You are therefore not entitled to it.

While I agree from the point of view of what is required, I do think asking to be added to the homeowners insurance policy isn't a bad thing and actually seems like a reasonable request. Everything else? Nah.

 

[Zigner]

I'm paying my income taxes, sure. Is that what you mean? Real estate taxes are added to the mortgage check and put in escrow.

YOU are not paying any of the real estate taxes, therefor, you are not entitled to the deduction. If you DO pay the taxes, then you may be entitled to claim the deduction. Consult with a tax pro on that.

 

[nbmd]

Thanks everyone for the information. However, my original question is, would writing such a letter be in violation of any law? Blackmail? I don't want the inconvenience of another hearing. If she makes such an agreement, fine. If she pursues refinancing to be done with me, even better.

 

[Zigner]

Thanks everyone for the information. However, my original question is, would writing such a letter be in violation of any law? Blackmail? I don't want the inconvenience of another hearing. If she makes such an agreement, fine. If she pursues refinancing to be done with me, even better.

Writing such a letter doesn't make a whit of difference - knock yourself out.

 

[Ohiogal]

Thanks everyone for the information. However, my original question is, would writing such a letter be in violation of any law? Blackmail? I don't want the inconvenience of another hearing. If she makes such an agreement, fine. If she pursues refinancing to be done with me, even better.

However just because she agrees doesn't mean you can claim the deduction for the mortgage. You could find yourself in legal hot water over that. Nor does she have to pay you anything to live in HER HOUSE.