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I have been divorced for 25 years. A part of the settlement with my Ex was that should would get our townhouse, she would assume the loan, and I would guarantee the loan (30 yrs). I could trust her with money, and to the best of my knowledge she has never missed a payment on the loan. At least no one has ever come at me for money. Now I am told she is moving to a continuing care facility (We are both in our 80s) and selling the townhouse, which she is legally able to do, though it would be nice if she had given me first refusal. I want to make sure the loan on the townhouse is paid off and that I am absolved from any guarantee of it.

My thought is that when she sells the house, if it is on the up and up (and I have some suspicions), she will have to pay off the loan. But will I get any confirmation of this as guarantor?

Should I get a lawyer? I live 350 mi. away now with my second wife (We too are moving into a continuing care facility), but I think I can relocate a lawyer who wrote up my Virginia trust if she hasn't retired.

brucedoe
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I would post your question on these 2 boards, Bruce:

Buying or Selling a Home:
http://boards.fool.com/buying-or-selling-a-home-100144.aspx?...

Lawyers/Attorneys:
http://boards.fool.com/lawyersattorneys-116229.aspx?mid=3040...
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Since you aren't owed anything from the sale, it is unlikely that you would receive any notice.

Was it a standard 30 year mortgage loan? Did she continue payments on an existing loan that was in both of your names? After the divorce did the loan show on your credit report?

Interest rates for mortgages 25 years ago were high compared to today. There is a high probability that she has refinanced in the last 25 years.

Have you tried googling the address to see if it listed for sale?
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vkg

I tried to get my ex to refinance a couple of times Once because it would cost her upfront $2,000 she wouldn't do it although she would have made that back in a relatively short time. The second time she was just afraid to do it because another lady told her of a bad experience. So I strongly doubt that that she refinanced. Incidentally, I was strongly advised by three health professionals to have no contact with her. That proved to be impractical, but I have limited it to once a year.

I'm unsure how the loan reads as I have no copy of it, but by court order I guarantee the loan.

brucedoe
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NoIDAtAll

Thanks for the suggestions. I will ask.

brucedoe
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I'm unsure how the loan reads as I have no copy of it, but by court order I guarantee the loan.

Loans are publicly recorded documents. If the county that your ex lives in has internet access to public records (many do), you should be able to look to see if there has been a lien release recorded. Some counties allow you to see copies of recorded documents online, too, so you may be able to see the loan docs themselves. Google the name of the county and state, along with 'clerk' or 'recorder'. There are services that charge for this, but if you access it through the county website, just looking at the docs is usually free.

If you can't find online access (maybe because the docs are too old for the county to provide images), a local attorney or title company should be able to get you copies. Neither of these options would involve contacting your ex, and you could determine the status of the loan.

Also, if your name is on the loan as a borrower (in order to provide the guarantee), you may be able to contact the lender to determine the status of the loan.

AJ
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I'm unsure how the loan reads as I have no copy of it, but by court order I guarantee the loan.

brucedoe


I understand your concern.

Does your divorce documents list the details of the loan? It states you guaranteed the loan. Hopefully, it would give details of the loan.

You can also try checking your credit report. If you can find the lender's name and your name is on the loan, you can directly contact the lender.

If the sale is legitamate, then a recorded mortgage would show on a title search. Title insurance is to protect new owners from any such problems. The loan isn't voided by an improper sale.

Do you have the parcel number? The online county recorder records may only be by parcel number
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You can also try checking your credit report. If you can find the lender's name and your name is on the loan, you can directly contact the lender.

Unless things have changed current mortgages aren't shown on credit reports. They show up only if they're in arrears.

Phil
Rule Your Retirement Home Fool
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Unless things have changed current mortgages aren't shown on credit reports. They show up only if they're in arrears.

Phil
Rule Your Retirement Home Fool


Mortgages have been reported for quite awhile. There are always exceptions, but it is normal for both good and bad status of mortgages to be reported to CRAs.
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Unless things have changed current mortgages aren't shown on credit reports. They show up only if they're in arrears.

I've checked my credit report a few times in the past 10 years - both through the free annual report, and by getting a copy while re-financing a mortgage.
Every time the mortgages have shown up on the credit reports.
I think it'd be rather unusual for a mortgage to NOT show up on a credit report. (I'm sure it can happen - but most mortgages are through large institutions like BofA, Wells Fargo, Chase, etc. - and they send their data to credit agencies.)
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