Legal Question in Real Estate Law in New York

Re: Removing a person from liability for a mortgage

If he is willing to sign and have her accept a total indemnification agreement, this could work. However, merely signing the agreement does not relieve the ex-wife from any liability if he defaults in mortgage payments, as this is not a binding agreement on the bank. If I were representing the ex-wife, I might want some extra money placed in escrow to assure his payments. The agreement could provide that if he defaults the house must be immediately sold and the mortgage paid. This also might not work, unless there is equity in the house to assure full payment of the mortgage if the house were sold, since the ex-wife would still be responsible if the sale were less than the mortgage. As an alternative, could he refinance with someone, like you, becomming an additional guarantor of the mortgage? Or, is there enough equity in the house so a home equity loan could be taken to pay the current mortgage?

Re: Removing a person from liability for a mortgage

He can sell the property and pay off the mortgage. This would relieve both your son and his ex from liability.

Re: Removing a person from liability for a mortgage

Mr. Nager is correct. Your suggestion would offer the bank nothing that it does not already have. Assuming your son does not want to sell, I would seek to arrange for some forbearance from the wife. You son may call me at 212-367-9167 to discuss this further. I do not charge a fee for the initial consultation.