Legal Question in Real Estate Law in Michigan
Mortgage terms and conditions
My wife's divorce settlement with her previous husband stated that her exhusband was to make a lump sum payment on their mortgage and pay the balance according to the current loan terms. The loan is an adjustable rate mortgage. At the time of the divorce the loan was a 30 yr ARM with about 25 years left on it. The payments were about $750 per month. He made the lump sum payment and continued to pay the $750 per month until sometime within the 1st divorce year the note holder adjusted the payment amount to $160 per month. This came to light when we attempted to secure a first mortgage on the property only to find his mortgage has first lien position. We contend that if the mortgage had been paid at the $750/month amount as at the time of the divorce the note would have been paid off already. The note holder says they have the right to amend the monthly payment based on the balance and number of years remaining on the note. We don't dispute that a lender could do that. What we dispute is that the monthly amount due is part of the terms of payment and that at the time of the divorce this was $750 per month, therefore her ex-husband should have continued to remit the $750 monthly amount. Is our position worth pursuing?
2 Answers from Attorneys
Re: Mortgage terms and conditions
Dear Sir:
This is in response to your email of June 18, 2001, which this office received on June 28, 2001.
Whether it is worth pursuing the ex-husband with regard to the monthly payment depends upon a number of factors, including:
a. Does the Judgment of Divorce specifically state that the ex-husband is to pay $750.00 per month.
b. Which party currently resides in the home.
c. Does the Judgment of Divorce state when the entire loan balance is to be paid in full and, if so, within a specific timeframe.
d. Does the reduced payment have an economic effect on your wife.
I advise that you have an attorney review the specific language within the Judgment of Divorce. Keep in mind that even if you have a valid claim you must also consider the cost of legal representation and whether it is worth the economic benefit that you are seeking. Given the facts you provided me in your question I am unsure how the ex husband�s reduced payment economically effects your wife.
Sincerely,
Michael D. Eberth
(313) 561-5700
Re: Mortgage terms and conditions
It depends on the exact language of the divorce judgment. Was he to continue to pay $750 a month, or just the payments of the mortgage? If the terms were just "pay the mortgage" then you probably have no reason to expect him to pay anymore than what the lender demands.
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