Am I entitled to equity from a home equity loan I co-signed?

Full question:

I married a women who already had her own home. We divorced after about 4 years. About a year later we started dating again and it became my primary resident, again. I co- signed on a home equity loan on the property. Now we are no longer together and I'm trying to move on, however she will not refinance to remove my name from the loan. Am I entitled to any of the equity? I do not know if I'm on the deed or not since we were not married at the time of the loan.

  • Category: Divorce
  • Subcategory: Property Settlements
  • Date:
  • State: Florida

Answer:

If you are not on the deed, you are only a co-signer on the loan. This means you are responsible for the loan if she does not pay, but you do not own any part of the home. The home serves as security for the loan, so if payments are not made, the bank can foreclose on the property.

Removing your name from the loan can be challenging. You should contact the bank to inquire about the process for being removed. Additionally, request copies of any notices regarding payments, as your credit could be affected if she misses payments.

Overall, you have limited options in this situation.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Yes, it is possible to co-own a house after divorce if both parties agree to maintain ownership. However, this arrangement requires clear communication and a mutual understanding of responsibilities, such as mortgage payments and maintenance. It's advisable to have a legal agreement outlining each party's rights and obligations to avoid future disputes.