Legal Question in Credit and Debt Law in New York
mortgage liability after divorce
My husband's first wife was given 4 years in their divorce decree to refinance the house they had purchased together and remove his name from the mortgage. That deadline is approaching in a few months and she has not refinanced. We are concerned that she will not refinance, and per court order the house must be sold. In the (likely) event that the house sells for less than the remaining amount on the loan, is my husband responsible for paying the balance of the mortgage? It will still be in both their names, but she will be in violation of the court order to remove his name from the loan.
If he will be financially responsible, is there anything we can do in the next few months to prevent this from happening?
2 Answers from Attorneys
Re: mortgage liability after divorce
The bank holding the mortgage has the right to sue both your husband and his ex for a deficiency on the mortgage in the event of a foreclosure. Do not worry about the house being sold by the ex for less than the mortgage. Nobody in their right mind would buy it.
If the ex has not sold or refinanced within the four years, then your husband will have the right to enforce the agreement in the courts.
Your husband should consult with an experience matrimonial attorney and provide him with copies of the Judgment of Divorce and the Stipulation of Settlement, etc.
Hope this helps.
For more information, please visit my web site:
www.BravermanLawFirm.com
Re: mortgage liability after divorce
Your husband and his ex will both be liable for the outstanding principal.
You need to contact a local divorce attorney. You may need to go to court on this matter.
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