Real Estate Law
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If you signed your interest in the house over to him in the divorce, all he has to do is file a motion to compel you to execute the documents necessary to effectuate the sale, and if you don't you could be held in contempt of court and fined/jailed for failing to follow the courts order. If you have already signed away your interest in the house, you have no right to demand money to sign the documents. Be careful with this; it could turn against you!
You can ask the court to order him to refinance, but if he is in a financial condition that has him looking to do a short sale or foreclosure, its not likely that a refinance is possible for him. Also, a court can't order the lender to take your name off of the loan.
It's not going to change the fact that you've already given up your interest in the house and don't have standing to refuse to sign docs to allow him to sell the property.
His motivation for wanting to get rid of the house really has nothing to do with you.
The court order from the divorce stating that he assumes the house and note gives you the right to seek an order from the judge compelling him to pay any money damages as a result of his default.
Thus, you've already laid the groundwork and have actually already won in the sense that you're not responsible and he is. The judge should grant you a judgment for any damages - including money - that you incur as a result of this event.