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Mortgage as collateral for car loan

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bmorgan

Junior Member
What is the name of your state? Alabama

My ex-wife lives in a house that I hold the mortgage on. Our divorce decree states that she is to make the payments while I hold the mortgage. Upon the sale of the house, she receives 75% and I get 25%.

According to her, she has been turned down for a car loan from every known source but her bank, which says I must ok the use of the mortgage as collateral. She states that the bank officer assured her that I will not be responsible for the car loan in any way. I have yet to confirm this as he is on vacation.

She seems to have more to lose by defaulting, but I'm wondering what other jeopardy I might be falling into.
 



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