My Ex-wife Decided to Short Sell Her House and I am Still on the Mortgage

OMG - life is so complicated that it's hard to keep up. and then when our clients' own divorce attorneys don't do there job - well, what to do??

Read ActiveRain blogs, I guess!! Thanks for the incredible info.

Courts and banks are two separate entities with different concerns. And the banks don't care about divorce decrees or who gets what. If you signed the note, you signed the note.

I seriously doubt if an attorney could have gotten this man's name off the debt without a refinance in the wife's name. Banks just don't say "Oh, OK, we'll release your liability."

Now that is just one more reason why you need to divide everything after a divorce. I have heard of this before and it was also the wife that did it. Liability, liability.............getting divorced? Sever ALL ties other than verbal.

Excellent and timely article.  I run into this all the time and it is a mine field. I remember when the biggest issue between divorced couples was when you found out they still had a joint credit card and "one of them" ran up a tab.

This is just a tiny added matter compared to the money matters but here it is:  If the wife short-sales, and the departed spouse agrees to it (which he must if on the Note), the departed spouse will not be able to get a new mortgage for quite a few years as Fannie/Freddie/FHA make you wait a varying amount of time.  3 years minimum.

We have to deal with this quite frequently. It sucks!! Trying to get financial info from a disgruntled ex is not a good thing. Even worse when the spouse that has possession doesn't want to move and isn't on the note.

I just went through this same thing but luckily for me (or maybe for my ex-husband) he was only on the deed and not on the mortgage. So I get the ding to my credit for short selling the house and all he had to do was sign off on the deed at the sale. It definitely makes me think of how to hold title in the next property I buy.

Very complicated issue and thanks for issuing the warning as this is valuable advice.

Only a professional will create a solution that protects the assets of either spouse, yet many don't engage professionals because they want to save money. To save money always hire a professional that offers a total asset protection solution in writing.

A good reason for divorce attorneys to have a lender on their speed dial.   Then we can help with the possibility of a refinance to the party maintaining the house.

Dave, this is a great and though provoking article.  I also see it a lot. In most situations that I see is that the spouse that gets the house will have a hard time making payments if both were working before.  I am not sure that either spouse was thinking clearly when they awarded or were awarded the property.

The end result is both of their credit scores going down the tube.

Just not right, too often divorcees encounter these issues years after the divorce. Time to revamp the system.

Thanks for the post, I have not encountered this senior yet, but now I will have the foundation to deal with it should it arise

Dave,

Just wow. I read the post and I could not answer any of these questions, and it really does not happen that often -LOL.

Itis an excellent post, and what a comment thread. I am reblogging it

Hi Dave. Wow scary stuff and all too true. Divorce can be so messy-thanks

Sounds like something to keep the attornys busy and paying their mortgages.  Thanks for a good post.

Dave ~ these are some questions that folks don't thnk about until it's too late.  I'm bookmarking this.

Dave this is great information.  I've seen this kind of situation more than I thought I would.

This is a great reminder that all property should be sold when you have your name on a mortgage, car loan, whatever asset.  And, then divide the proceeds if there are any.