Name On House Title But Not Mortgage

Added January 18, 2008 by Ilyce R. Glink

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Summary: A divorced man still has his name on the title of a home with his ex-wife who now can't afford the mortgage. While he's not liable for the financial end, if the bank forecloses on the home and sells it at a discount, his equity could disappear. If the man can afford the mortgage, he might want to step in to save his interest in the home.

Q: My ex-wife and I own property in Florida. She is the sole person on the mortgage but I am also on the title.

She is struggling with paying the mortgage each month. What are my options? Please, help me with this one.

A: Why are you still on the title if she is the sole person on the mortgage? Was she unable to afford to give you your share of the property when you divorced?

If the property was paid off or nearly paid off when you two were together, you might have been better off taking back the mortgage yourself and allowing her to pay you each month. You could have secured the mortgage with a first lien on the property.

Now, if she defaults on the mortgage, your share of the property could be at risk. While you're not liable for the financial end, if the bank forecloses and sells the property at a discount, your equity could evaporate.

You and your ex-wife should sit down and discuss the situation. If you can afford to pay for the mortgage, you may want to do that until your ex-wife can sell the property and find something more affordable.

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