My STBX persuaded me to apply for a HECL a short time after we purchased our house as my name is the only name on the mortgage. I did and forgot about it. A short time later my STBX announced she wanted a divorce and was leaving. Unbeknownst to me she had opened and activated the HECL with a logonid and password unknown to me and had taken $50,000.00 out of the HECL and purchased a townhome for herself. When confronted with this she said she figured it was her share of the equity in the marital home based on the appraisal done at that time and was entitled to it. Of course as the Real Estate market has plummeted the house cannot be sold for what is owed on it. That means I have no equity and have two mortgages to payoff. Now she is claiming that $30,000 of that is “payback” money that she “loaned” me to payoff a previous alimony case with a previous wife. There was no agreement that this was a loan - her words to me when I was fighting in court (and winning) was “just pay her off and be done with it - sever the last tie”.
She will be serving me with papers this week - I need to know where I stand with regards to that $50,000 owed on the HECL.
I had been paying interest only for two years but I started at the 1st of 2011 paying Prin & Int.