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Posted by Ward-CA- on April 30, 2002 at 22:18:28:
In Reply to: Ok, just how well do you think you know this stuff?? posted by kimberly Ann Kubalek on April 30, 2002 at 03:29:47:
: Ok, someone please educate me!
: My question is: Is titleholder responsible for mortgage?
: Here is the situation:
: My sister's ex (a real estate agent, no less!) lied all over the place in order to purchase a home as a single man prior to divorce. After the divorce, he signed the title over to her, telling her what a great deal she was getting for the divorce settlement.
: Now, just a year after the divorce, we find out that the house is encumbered by tax liens (state income) which he incurred during their marraige and which the divorce decree specifies that he will take complete and sole responsibilty for as part of the divorce.
: So, HE has the 180k mortgage, SHE has the title. He convinced her that the "equity" that she would have right away (Mr. Real Estate shyster says he got a great deal and assured her that she should see around 20k).
: Well, now she just wants OUT of this whole ordeal. Should she/can she sell? Is she responsible for the mortgage? If the mortgage company learns that he lied on the mortgage application and 1) was married at the time and 2) never intended to live in the house at all--she is terrified that they will forclose the loan (her ex put her through bankruptcy and they even had a HUGE forclosure 4 years ago--she knows she'd never qualify to take over the mortgage). CAN they forclose on the house even if the title is now in her name?? Will she will lose the house and her entire divorce "settlement?" Can she sell the house, pay off the liens and just take the money and run, leaving him with the mortgage?? Her divorce attorney, CPA and tax attorney seem confused! What should she do??? Please help!!
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Kimberly,
A. No one is responsible for a mortgage that they didn’t personally sign for or guarantee.
B. It doesn’t sound like there’s enough net equity available to make a sale worthwhile at this time.
C. The wife should come through a foreclosure on this property unscathed since the loan is not in her name. With little or no equity she’d get nothing out of the foreclosure sale.
D. Yes, a foreclosure against the 180K first would disposses her of her interest in the property.
E. She couldn’t sell the house and selectively decide which mortgage would be paid off and which would not.
Hope this helps.
