Am I liable for my ex-husband's mortgage?
In 1991 I signed a 5 year balloon mortgage with my then husband, which was I believe refinanced every five years from then, so 1997, 2002, and 2007. I divorced him in 2002. The loan was refinanced in 2007 with out my notice, signature, consent, or appearance. On the 2007 documents, my name is no where present as the grantor. Somewhere before the last refinance the manufactured home went into foreclosure, the terms of the loan were changed, such as interest rate and the amount of the loan. When the home went into default in 2007, I was not notified. Here is the problem: The manufactured home is now in foreclosure again. The bank is coming after me for the remainder of the loan. The exhibits they provided in the complain were the *2002* loan documents and a 2007 UCC financing statement, and nothing else. This is the information I have pieced together: 1. I had NOTHING to do with the 2007 loan and the verbiage used in the loan was "You are entering a new transaction..." It is literally the first sentence on the right to cancel, which I of course never received. 2. All documents, including bank statements do not contain my name after 2002. 3. When I called the bank, they denied information to me and stated I was not on the loan. 4. The terms of the loan did change from 2002 to 2007. There is more, but I will stop, but finally, on the UCC financing statement filed in 2007 my ex-husband is the only name on that document.
Your main question is whether you are liable for your ex-husband’s mortgage. Since he refinanced the original loan that was taken out in both of your names into a loan in only his name, I cannot understand why the creditor claims you are still liable for the debt. The fact you were on the original loan should not be an issue, as the new agreement signed by your ex-husband when he refinanced should supersede the old agreement to which you were a party. Even if your ex-husband refinanced with the same company, the old loan agreement no longer applies if he signed a new contract.
To learn more about refinance loans in general, which may provide some clarification in your present situation, I invite you to visit the Bills.com mortgage refinancing page. You can also read more about the foreclosure process.
This creditor may call you demanding payment simply because your ex-husband is not paying and they are trying to collect on the debt. While lenders are not generally allowed to disclose information about delinquent obligations to third parties, the creditor may have your information from when you were on the loan and may be contacting you as a last-ditch effort to secure payment. If you have not already done so, you may wish to contact the lender directly to explain that you are not liable for your ex-husband’s new mortgage, and that it needs to stop contacting you seeking payment. You can call the creditor to convey this message, but you should also send a letter to the same effect so that you have documentation of the fact that you put the lender on notice that you do not believe that you are responsible for the mortgage. I recommend sending your letter via certified mail, return receipt requested, so that you have proof that it was delivered.
In addition to the above, I strongly encourage you to consult with an experienced attorney in your state to assist you in determining if you have any liability for the payment of this debt. An attorney should be able to communicate with the lender regarding your claim that you are not liable for the debt, especially if you find that the lender is unwilling to listen to you, or if the lender escalates the matter by referring the account to an attorney for collection.
Your attorney can also represent you in court if the creditor decides to pursue legal action against you. I know that retaining an attorney can be expensive; however, given the amount of money you stand to lose if the lender continues to pursue you for the payment of this debt, it would probably be money well spent.
I hope this information helps you Find. Learn & Save.
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If you are struggling with debt, you are not alone. According to the NY Federal Reserve total household debt as of Quarter Q4 2022 was $16.91 trillion. Student loan debt was $1.60 trillion and credit card debt was $0.99 trillion.
According to data gathered by Urban.org from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 8% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.
Collection and delinquency rates vary by state. For example, in Delaware, 15% have student loan debt. Of those holding student loan debt, 8% are in default. Auto/retail loan delinquency rate is 4%.
To maintain an excellent credit score it is vital to make timely payments. However, there are many circumstances that lead to late payments or debt in collections. The good news is that there are a lot of ways to deal with debt including debt consolidation and debt relief solutions.
In California and Nevada, for example, the spouse not on the mortgage needs to sign a waiver-like document that states they consent to the other spouse's signing the mortgage.