My real estate (Missouri) was deeded to me via quit claim after my divorce, however my ex husband is the only one on the loan. I have a deed of trust from the purchase in 2006 that shows both my ex-husband and me as borrowers but somehow my name has been removed from the loan when our loan was sold to another banking institution which was later acquired by another. The bank won't disclose any information with me because they say they have no record of me on the loan. If the deed to the property is in my name but my ex-husband is the only one on the loan, does this mean that I am not responsible for the debt and is the debt even secured by the home as collateral?
Commercial Real Estate Attorney
You should invest about $250 with a local title company to research the title and any liens.
When you obtained the property in the divorce, you obtained it with any existing liens; they follow the property until paid off, whether it is sold 10 more times, is transferred by divorce or otherwise.
If your name is no the original note, which was no doubt transferred to the successor bank, you are still liable. If it was refinanced, which would have required your cooperation if your name was on the deed, so that your former husband paid it off, you are released.
You are not responsible for the debt if your name is not on the current note/loan. However, if the property has a deed of trust (mortgage) lien on it, you could lose it to foreclosure if the debt it not paid.
Again, a title company report will give you many more answers, at which point an attorney can answer all the rest of the questions.
This comment does not create an attorney-client relationship. The law and its application by the courts is constantly evolving and changing. This discussion is not to be taken as a definitive guide, and should not be relied upon to determine all fact situations. Each set of facts must be examined separately with the current case and statutory law analyzed and applied accordingly.
If you would like an interest in the property, I encourage you to hire counsel. If you want to walk away, it sounds like the lender doesn't consider you a debtor and may not come to you for payments.
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