Legal Question in Real Estate Law in Illinois

Re: Mortgage

You have no interest in the house if you signed off on the deed. But the mortgage company did not release you from responsibility and you should have ensured that part was changed before signing off. The mortgage company can report you for bad credit if she fails to make payments or is late, etc. She cannot force you to pay half the closing costs but she also does not have to refinance.

Re: Mortgage

You have no interest in the house, but are still liable to the mortgage holder on the mortgage as you did not obtain a release from the lender.

If this was a divorce a good attorney would have made sure that there was a requirement for refinancing and there would have been an equitable sharing of the closng costs. Therefore, her request for you to share the closing costs is not unreasonable. I would do it if I was in your position. Right now, you would have difficulty getting a loan for a new residence because of this existing mortgage, not to mention being liable if she is late or doesn't make payments.