Divorce agreement doesn't affect original mortgage contract
Q. My husband and I were divorced about five years ago. We owned nothing except a house with very little equity and I agreed that he could keep the house. I think I signed a deed giving my interest in the property to him. I just wanted out as fast as possible. Part of our agreement was that he would sell or refinance the house within one year to get me off the mortgage.
I moved to Florida and forgot all about the house. I have had no contact with him since the divorce.
Last week, I got served by the sheriff with a Complaint for Foreclosure. It appears my ex has not been making his mortgage payments.
Do I have anything to be concerned about? I gave him my interest in the house and have not been there for five years. The mortgage was current when I left.
A. Yes, you have something to be concerned about. Although your divorce judgment may provide that he was responsible for the mortgage obligation, this has nothing to do with the contract you apparently signed with the mortgage company. That contract provides that you and your ex will timely satisfy the terms of the note and mortgage. The divorce judgment has no impact on this obligation between you, your ex and the lender.
In the event this foreclosure runs its course, you have two major concerns. One, this will negatively impact your credit rating. And two, it is likely a deficiency judgment will be entered against the two of you. This "deficiency" is the difference between the amount owed on the mortgage (plus costs, interest and attorneys fees) and the amount realized from the foreclosure sale. These judgments are often significant. The lender can then satisfy the judgment by garnishing your and/or your ex's wages, recording a lien against other property owned by either of you or attaching other assets, such as a bank account.
You need to immediately become involved in these proceedings. Presuming this property is in Illinois and you still reside in Florida, I would immediately retain an Illinois attorney, located in the vicinity of the property, who is familiar with foreclosure law. I would also suggest contacting your divorce attorney (if you had one) and explain what is occurring. It is likely your ex has violated the terms of the divorce judgment and initiating contempt proceedings against him may be beneficial.
In the event your ex is hopelessly behind, a deed in lieu of foreclosure may be appropriate. Here, the homeowner(s) agree to convey the property to the mortgage lender in exchange for the lender terminating the foreclosure proceedings and agreeing not to pursue any deficiency. There may be other remedies available to you. Don't wait. As time goes on some of your options may no longer be available.
Q. I followed your advice from some time back and checked out my property on the county assessor's website. There are a few errors in the description of my property which I believe is leading to an assessment that is larger than it should be. What should I do?
A. Contact the county assessor by telephone and tell them what you told me. Every county has a procedure to correct assessment information.
• Send your questions to Attorney Tom Resnick, 345 N. Quentin Road, Palatine, IL 60067, by email to tdr100@hotmail.com or call (847) 359-8983.