Hey guys. Okay. Before you judge me. Let me give a quick lowdown of the situation and pls - I’m not seeking the conventional banking credit score advice. I know all that already

But imagine this. I’m M, a working mom, recently divorced, and in our settlement. I gave my ex the house he asked for. - to just get out of the divorce asap cos he was literally choking the life out of me, slowing everything down just so that I can’t leave him. I just wanted this marriage dissolved asap. With the condition that of course I get out of the mortgage, and he gets sole ownership. Even though I’ve been paying for it for 10 years, (whereas he has been unemployed and paid nothing). It’s fine. Take the house. Cos i want my freedom. And I have enough money to tide me over for a long time, and a stable job. So no worries.

So this is the problem. He hasn’t made ANY attempts for ownership transfer or loan repayments. We’re no longer married and I still have to pick up his shit. I’m still the one doing all this shit.

I know I can take him back to court but it’s so draining!

So - this is my plan. And pls, I hope you listen with openness:
1. I default loan repayments
2. Then I wait for the bank foreclosure -
3. And what I understand is that if the buying price exceeds the remaining loan. I won’t owe the bank anything.

I’ve paid a valuation expert who’s valued this property at about 800k, and right now, say there’s 300k left to the loan. Am I in the safe zone?

Ps: pls be reminded that this isn’t about money. I just want to get out of his control. I want to have NOTHING to do with him, not even in property. I find it ridiculous that im now divorced, but still unable to get out of this with him.

Appreciate your feedback when you look at the scenario above with a different perspective. I really don’t appreciate another person wearing a “bank” hat.

Out of curiosity, the title under whose name? Both or single person ?

I’ve seen Bank give loan to jointly 2 persons but only 1 name on the title

The properties is in both name? Loan is in sole name? Need to provide more details. Usually bank will Lelong your prop based on remaining loan. If Lelong price is higher than the loan balance, you will get the balance.

Just sell the property off

1. I default loan repayments
No need to wait for Lelong. Just walk in the bank and request your house to put on sales in lelong session
2. Then I wait for the bank foreclosure -
3. And what I understand is that if the buying price exceeds the remaining loan. I won’t owe the bank anything.
By right after sell off and deduct outstanding amount, and fees and the exceeds amount will goes to you. Or selling price not so good will be another way
round (you need to pay the some money).

Just sell the property off

Sorrry totally typed in a hurry.
1. Sadly, yes still in both names!
2. Which is why I can’t “sell” it legit way cos my vengeful husband just wont move, sits on it, hasn’t paid a cent, yet won’t sell it. Causing me - the sensible one- to deal with this. If it was a sole property of mine, it would not even be an issue to begin with. I just don’t want to have anything “shared” w him. And the process to get out of this/ or get his name out - takes forever.

Thanks so much for this. I wasn’t aware that was possible. Tho, for number 1 - if it’s a joint ownership, can I go to the bank and do this on my own? That will be more ideal!!

1) was the house ownership arrangements spelt out in court order for your divorce judgment? Or it is just private arrangement among you two, for him to sign on the divorce docs?

2) did you inform the bank that your ownership should have been transferred to him follow divorce arrangement? And provide black and white to prove that he should assume the ownership and remaining loan starting on the divorce date?

Hi Jingle. Thanks for your questions. And they’re such good ones that got me thinking.

1) yes it was. Finalised immediately in the decree absolut in august.
2) I haven’t informed the bank yet. Will need to ask you more advice pertaining this. What happens once I inform the bamk? Cos when I asked a friend from banking industry, they say banks don’t care about divorce settlement. But anyway, if I were to call - I reach out to the home loan division yes.
(My old loan officer from 10 years ago has already left).

Joint name = two or more owner.
To sell the property= Owner and you must give consensus to bank to proceed next action. Can not be done by only one side.

Now I get your point from the 1st post. You are the proactive in this situation. Loan is under your name but house is under ex-husband and you.
Your purpose was to wait for the loan default and let the lelong process to kick in w/o getting your ex-husband agreement.

Your damage will be CTOS/CRISS rate.
However i not sure after bank lelong the unit, the amount will goes to you or split into two person? This one need to find out.

This post has been edited by giftfre: Sep 18 2023, 11:03 AM

For ours, it was in both names.

walk into bank with the divorce settlement, tell your story and ask what options they can provide, to remove you from the loan "but slim chance"

actually you could have the judge put into writing that the bank must transfer the loan solely to him, but i think its too late now

Yicks!
messy situation- hope you can get out of it and move-on soonest.

Sorry for your dilemma. By right your ex husband should refinance with new mortgage under his own name to settle the old loan, so that your good name can be discharged from existing loan agreement, and by that time his lawyer should have let you sign all required documents for transferring of your half ownership to him back to back. Not sure why this has not been done yet.

But I am more concerning on your first post saying that you have been serving the loan solely and he doesn't pay. If his income level is too low or unemployed, which mean at first stage both of you should liquidate the house to settle the loan and any remaining amount to be given to him as agreed, if he is ineligible to afford housing loan to maintain the house.

Perhaps you should check with your lawyer first for better solution. This is to protect your interest.

What your friend said might be correct also, the bank can't do anything to the loan agreement like removing your name, but as I know the bank also don't like to initiate foreclosure process, hope the officer might give some suggestion to you. If the bank also can't advise, and your ex husband still don't want to complete his part, best is still to check back with your lawyer. Unless the lawyer also advise you to let the house to be foreclosed and it won't impact your credit rating.

if court case high change you will win but that consume a lot of time and energy.
perhap stop the installment and let the bank lelong it? at least if the house is successfully sold, the bank will pay back to your account on the balance. and your ex is getting nothing but free-stay for 10yrs...lolss

bear in mind, the default record will leave at your ccris ctos for at least a year... and there is no telling how much the bank will lelong your unit, they may just lelong whatever price they wan as long as can cover the outstanding + interest...

and to be frank, its not your husband dont want to do it, it just he cant do a shit unless he found a proper job... lol... he cant refinance the house under his own name only when he cant even afford a loan... its better to ask a banking lawyer for the best advice instead of you trying to wiggle things out on your own

Clean way is take a personal loan to pay off the 300k outstanding from the house. Since u already factored giving the entire house to your ex husband.

Else lelong the house , hopefully get 700k from it cause ppl will bid like crazy sounds like a good prop at 800k valuation. 300k settle loan remainder 400k split and get back 200k > homeless ex > dmg to yrself is credit rating for 1 year or longer. Do check on yr HR policy on defaulting on loans, cuz u sure can’t pass background check for yr next job if it’s big company. Cheers good luck.

Else approach for free legal aid assistance at yr local MP.

This post has been edited by razerlxz: Sep 18 2023, 05:20 PM

This my thoughts for your consideration.

1) ownership and transfer of property is spelt out and its binding in your DA settlement; and

2)loan is in default (if any)

I would suggest you go back to the legal firm who handled your divorce. Let the law firm in correspondence with the bank according to the law following your DA settlement. At least put/ record the defaults obligation on your ex-husband, this is due to his reluctance and failure to serve the divorce settlement thus you are bearing the consequences therefrom.

Letting a prolong loan in arrears and awaiting a bank lelong will do you no good ie credit record.

Yes, be prepared for a service (legal) fee but i think this is your best recourse.

You don't need to look back nor stressed over this, let the legal man do the redress for you. At least you know, they are redressing it right on your behalf. Nego a favourable legal fee with your lawyer.

This post has been edited by jojolicia: Sep 19 2023, 09:30 AM

I’m fairly new here so I don’t know how to tag people who have responded. But I’m overwhelmed w gratitude towards your responses! Thank you so much as it got me thinking about different solutions given that this issue with my toxic ex has plagued me for a decade now so thank you for taking the time to respond.