Answer: If the house passes to her, you should have your Separation Agreement expressly provide that she should apply for a new mortgage alone. You should also contact the bank which holds the present mortgage and ask them whether they will permit you to remove your self from the mortgage obligation once the title passes […]
Answer: If the house passes to her, you should have your Separation Agreement expressly provide that she should apply for a new mortgage alone. You should also contact the bank which holds the present mortgage and ask them whether they will permit you to remove your self from the mortgage obligation once the title passes to her.
as long as you remain on the mortgage, the bank will be able to seek payment from you and you will remain liable for full amount owing, even though you no longer have any interest in the property securing such mortgage.
Bottom line – do not agree to continue to be liable on the mortgage.
Leonard M. Weiner, Esq./Divorce Solutions