Housed deeded to wife, refinance is in husband's name

Question for a girl friend who is going thru a divorce. They are trying to settle without getting attorneys involved.

Her husband willingly deeded their house into HER name only. There is a refinance loan against this house, the loan is in HIS name only. She never consented nor signed for the loan.

Will this loan have to be closed out with him releasing his name from the deed? Can he continue to use the line of credit till the term of the loan is up; therefore increasing the debt on the collateral? If she ever decides to sell, will that loan have to be paid off (even though the loan is in HIS name)?

Please advise. Thank you!

I’m not quite sure I follow the facts you have shared. I don’t know how the Husband could have gotten a loan against the house if he had no ownership interest in the home, unless he deeded the house to her after this refinance happened. As far as whether she will owe the balance of this loan if she sells the home, that depends on how the loan is structured. If the house is collateral for the loan, then the balance would have to be satisfied upon the sale.

If your girlfriend and her husband are trying to reach a settlement, this issue needs to be addressed in the separation agreement. There should be some language requiring him to satisfy the balance of this loan.