Mortgage, Deed with different names

[Qfactor]

This scenario is in the state of Texas. My ex-husband has a partnership with his brother, and they co-own several properties. 15 years ago, when we were married, my husband used one of these properties as collateral for a property loan. As we were married at the time, I had to sign the loan papers. My name is still on the note, as he claims he cannot refinance it. The property title shows his brother’s name et al as the owner of the property.

My ex has diligently paid the note all these years and I expect he will continue to do so. My concern is that he is unable to refinance and if he dies, I will become responsible for paying off a loan for a property which I do not own. What are the steps taken in such a case? Do I have any recourse to have my name removed from the note? According to our divorce decree, we were both supposed to have all properties refinanced to clear our names of ownership and debt. Would the bank (Wells Fargo) simply short sell the property and handle the process? Should I be concerned about having a judgement placed against me to pay off this loan? The house is located in Travis County. I now reside in Hays County. The house is appraised for tax purposes over $350,000. The note has a balance of $72,000 remaining at this time and approximately 15 more years of payments.

 

[LdiJ]

This scenario is in the state of Texas. My ex-husband has a partnership with his brother, and they co-own several properties. 15 years ago, when we were married, my husband used one of these properties as collateral for a property loan. As we were married at the time, I had to sign the loan papers. My name is still on the note, as he claims he cannot refinance it. The property title shows his brother’s name et al as the owner of the property.

My ex has diligently paid the note all these years and I expect he will continue to do so. My concern is that he is unable to refinance and if he dies, I will become responsible for paying off a loan for a property which I do not own. What are the steps taken in such a case? Do I have any recourse to have my name removed from the note? According to our divorce decree, we were both supposed to have all properties refinanced to clear our names of ownership and debt. Would the bank (Wells Fargo) simply short sell the property and handle the process? Should I be concerned about having a judgement placed against me to pay off this loan? The house is located in Travis County. I now reside in Hays County. The house is appraised for tax purposes over $350,000. The note has a balance of $72,000 remaining at this time and approximately 15 more years of payments.

The house would remain collateral for the debt. Your ex's estate would also be liable for the debt and it would have to be paid off as part of his estate, or continue to be paid for by whomever wanted to keep the real estate. All in all, while you have some risk, its not as much as you might think.

 

[HRZ]

It might not be a current point...but if you were to seek financing of a home etc your being on that prior note would show up as a possible credit issue .

And yes, if he passes or the note otherwise falls behind , the lender can look to you to pay up. And his estate may not be willing or able to step up.

I seriously doubt it is impossible for him to refinance...it may be inconvenient ..but
thats different

Personally I would lay in a solid fresh multiple paper trail of demanding he get it done as per the order IF you willing to seek a contempt action if he refuses.

 

[LdiJ]

It might not be a current point...but if you were to seek financing of a home etc your being on that prior note would show up as a possible credit issue .

And yes, if he passes or the note otherwise falls behind , the lender can look to you to pay up. And his estate may not be willing or able to step up.

I seriously doubt it is impossible for him to refinance...it may be inconvenient ..but
thats different

Personally I would lay in a solid fresh multiple paper trail of demanding he get it done as per the order IF you willing to seek a contempt action if he refuses.

One of the properties is the collateral for the debt. Therefore the estate won't have any choice but to "step up". Not unless the estate wants to lose a 350k house over a 72k debt.