My former spouse was in control of the house after we divorced and was renting it out. He kept the rent money and the house foreclosed. During the Equitable Distribution trial that followed the judge awarded him the house, value of $200,000, on his asset side but then gave him the full amount of $244,000.00 on his debts. Is this fair? The house sold in foreclosure for $172,000. Since he was awarded this am I relieved of the deficit on the loan with the bank or am I still responsible?
It sounds correct that the judge awarded your ex-husband the marital residence and counted the fair market value plus the mortgage balance to him.
You are not responsible for the deficit on the mortgage if your name is not on the mortgage. If your name is still on the mortgage, you would be responsible from the bank’s point of view, but your equitable distribution court order may state that your ex-husband is to be solely responsible for the mortgage and that he is to hold you harmless and indemnify you from and against any obligations on the mortgage. If that is the case, you are not responsible for the mortgage deficit, but keep in mind that the bank may still try to collect the deficit from you.
Anna Ayscue
Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest
Rosen Online | Unlimited confidential access to a North Carolina attorney for $199/mo - click here
The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.
We wound up in a Rule 59 trial and when I brought up the fact that I would need the new judgment to say as you stated that ex-husband is to be solely responsible for the mortgage and that he is to hold you harmless and indemnify you from and against any obligations on the mortgage. His attorney claimed it was hearsay. The judge never responded. Is there some former ruling, statute or something that I can quote in our next round of hearings? The judge has suggested that he split the debt between us as opposed to giving it all to my ex. How does that effect who would be responsible to the bank? He was solely to blame for the foreclosure. He lived in the house, rented it out and pocketed the rent monies, kept notices from the bank and did not forward to me in Mississippi where I now live.
You can file a Rule 60 motion for relief from a judgment if there was mistake, excusable neglect, inadvertence, surprise, fraud, or newly discovered evidence. You can also return to court for the judge the clarify his or her original order.
If the debt is split between you and your ex-husband, then you would both be responsible for the debt. If the debt remains titled jointly, then the bank/loan company would still view both of you as responsible for paying the debt.
Anna Ayscue
Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest
Rosen Online | Unlimited confidential access to a North Carolina attorney for $199/mo - click here
The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.