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Shortsale of property and seperation agreement

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?

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Attorney answers 2


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 opinion. You should speak to an attorney for further information. The poster is licensed only in CT & NY. Please visit for more information about our services. If this post is useful to you, please remember to upvote it.


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!

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Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and Massachusetts only and make no attempt to opine on matters of law that are not relevant to those three States. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. Consult an attorney in your locale before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney client relationship.



Bottom Line -- Your house is going in foreclosure if you are $14,000 behind in payments and you can't make them up. If your ex-spouse will not cooperate to allow you to do a Short Sale (since your ex has possession of the property), you are in a no win situation. You need possession of your house to insure you can complete a Short Sale otherwise the house will most likely end up in foreclosure. I am not an attorney, I write for the and offer help to those considering a Short Sale