Shortsale of property and seperation agreement

Asked over 3 years ago - Youngstown, OH

I am the only person on both the loan note and the title/deed for the house. My ex wife is allowed to stay there by way of the separation agreement. I was to execute a quit claim deed to her. However...I've found that the only way I can do this is if the loan is caught up. At present it is behind by about $14,000 so this is not a possibility for either of us to do. Would the lender allow me to do a short sale of the home to avoid foreclosure, which would be in contempt of the terms of the separation agreement, and what consequences would I face as a result of the sale?

Attorney answers (2)

  1. Daniel Robert Hamad

    Contributor Level 15

    1

    Lawyer agrees

    Answered . You should talk to your divorce attorney about your responsibilities.

    This is not legal advice and is not intended to create an attorney-client relationship. The post is only an... more
  2. Theodore Lyons Araujo

    Pro

    Contributor Level 20

    1

    Lawyer agrees

    Answered . The divorce agreement, decree or judgment supposedly settled the rights and obligations between you and the former spouse. However, it does not change the obligations each of you had with third parties who were not in Court when you got the divorce.

    The ex-spouse may refuse to make payments to credit card companies, car financing companies, mortgage companies, etc. Your ex may even file for Bankruptcy.

    Depending on the law in your State you may have an action against the ex-spouse, and you may even be able to sue the ex-spouse if they file for Bankruptcy and have their obligation to you declared “non-dischargeable”.

    Unfortunately the divorce or the ex’s Bankruptcy does not relieve you of any obligations you had to these third parties.

    See a lawyer right away!

    REQUEST: Please give this answer a "thumbs up"(below) if you find it valuable.

    Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and... more

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