Legal Question in Real Estate Law in Wisconsin
Eleven Plus years after a divorce, my credit is all of the sudden being impacted by my ex having late mortgage payments. I was advised that the divorce decree and quitclaim deed relieved me of any financial responsibility of the debt. These two items have been all the documentation needed over the years since the divorce to prove that I am no longer a part of this debt to other lenders. Now, however, my credit is going down because of his late payments.
I was divorced from my first husband over 11 years ago. There was a mortgage loan with both of our names on it that was less than two years old when we were divorced. The divorce decree states he was to assume the full mortgage that originally had both of our names on it. A quit claim deed was filed so I am no longer on the title. These two documents have been enough for any lender over the years to prove I am not financially responsible for that debt. It has never counted against me in a debt to income ratio calculation because of these two documents.
My current husband and I have worked to maintain excellent credit for the past 10+ years. This month, we went to refinance our current mortgage and take advantage of both the low rates and our high credit rating. In the process, we were told that my credit report now reflects late mortgage payments, thus making us actually ineligible to refinance. We have discovered THESE ARE MY EX-HUSBAND�s late payments for the mortgage I have been told I was not financially responsible for. There are many more details, but without going into everything, I need to know: What can be done?
2 Answers from Attorneys
Here are some basic facts you need to know:
1. You and your Ex signed a Note to the bank and gave the bank a mortgage securing the obligation to them with the property that your Ex now has; and
2. What you, your Ex and even the judge in the court case decide has no bearing upon the rights of the bank to collect on the note.
So what is happening is this: your Ex is late on the note which you both signed. That does affect both of your credit scores. Your recourse is to go back to the divorce court and make a motion for him to be found in contempt for failure to hold you harmless on this Note. However, if he is insolvent, files bankruptcy or just can't pay it, you are still obligated. Good luck! You need a good divorce attorney to handle this for you.
As a practical matter. all of the family court litigation in the world might not solve your problem, which is an issue in nearly all divorces these days where there are mortgages. If your ex lacks the money to pay off the loan or the 850 credit score which is needed these days in order to refinance, all the court orders in the world will not make these things magically appear. Selling the house or paying the loan yourself may therefore be the only way to get this loan of your credit report. If you ex is not willing to cooperate with a sale, family court litigation might encourages, but, again, might not change the fact that we have a horrible real estate market making sales difficult or impossible (or at least sales for enough to pay off mortgages), I am therefore sorry to advise that there may not be any good solutions for you, although applying litigation pressure might help,. My answer does not automatically make me your attorney, so you need to consult with your own attorney before acting upon any of my comments and may contact my office at 333 Main St, Racine, WI 53403, 262-633-3090, during business hours, or see me on the web at www.jayknixonlaw.com. Also see 25 years of my answers to consumer questions at http://www.lawguru.com/answers/atty_profile/view_attorney_profile/jknixonAttorney answers may contain advertising materials.
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