Who is responsible for the payment on a second mortgage of the marital home when there is a foreclosure?
My ex-wife says she isn’t legally responsible to pay her half of the debt because in our divorce decree it says I am responsible for any debt leftover after the sale of our house while she would have received any proceeds from a sale.
Since there was no marital home sale, who is responsible for what?
I am unable to give you legal advice on divorce. I can give general divorce help for men, though, my knowledge is based on Michigan divorce laws where I am licensed to practice.
A second mortgage is a secondary lien on the subject property. If the first mortgage holder forecloses and there is no additional equity left in the home, the secondary mortgage holder’s secured interest is lost.
However, that does not mean that the debt owed under the second mortgage is also discharged. There is still a debt owed under this second mortgage.
A House Divided:
Who is responsible for the payment on this debt depends on the wording of your Judgment of Divorce.
Was a party living in the home during the time of sale? Did one party frustrate and/or otherwise stop the sale of the home, thus causing the home to be lost to foreclosure?
The answers to these questions may require the offending party to contribute and/or be completely responsible for the remaining amount owed.
Please note sometimes secondary mortgage holders will agree to negotiate the amount owed. An attorney may be able to help you reduce the amount claimed by the second mortgage holder.
Remember, I am unable to provide you with anything more than divorce tips for men, so please consult with a divorce lawyer in your jurisdiction.