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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Family Law
Satisfied Customers: 111561
Experience:  Experienced attorney: Family law, Estate Law, SS Law etc.
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I am trying to help my X wife. she remarried after our

Customer Question

I am trying to help my X wife. she remarried after our divorce. She owned the house 100% she then remarried. her new husband took out a home equity loan to make improvements. In exchange for the home equity loan they agreed to put his name on the deed. They then get divorced. In the Divorce agreement there was a stipulation that the x husband would lose any ownership in the house and that my x wife would own the house 100% and that her x husband would payoff the home equity loan. Well he never paid off the home equity loan and it took a year for my x wife to get the deed changed back into 100% her name. During that time her x husband filed for chapter 7. The bank that the x had the home equity loan with put a lien on the home as it showed it was still under his name even though the divorce was executed and filed. so now the bank is looking to get the past due home equity (which has not been paid for the past 8 yrs) off the remaining proceeds of the sale of the house. So the question is what legally holds precedent. the divorce papers that were agreed to or the deed that was a year later transferred to my X, but during that time the bank put a lien on for the past due home equity. we are trying to see if the bank is really capable of taking the past due home equity loan out of the proceeds of the home sale.
Submitted: 1 year ago.
Category: Family Law
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

Unfortunately, if he took a home equity loan, the loan attaches to the property, even though he is no longer on the deed. So I am afraid the divorce decree cannot alter the terms of that loan agreement. So, as he was on the deed at the time of the loan and the lien attached to the property, because they gave a loan based on the equity of the home, even though he is removed from the deed the bank can maintain the lien on the home and it would have to be cleared.

NY has a 6 year statute of limitations though, so if they have not sued in 6 years from date of last payment, she would have to file suit in the bank to remove the lien as it is now time barred from them suing to collect on the lien and that is the way for her to get it removed from the home.