QLD Divorce - Taken Off Title Deeds but Not Mortgage?

[Mary C]

Hi. I escaped an abusive marriage about 7 years ago. We purchased two land properties in the time we were together. In the midst of going through the divorce I was paid out a small amount for one of the properties and I believe I signed titles over to him and also remember going into a bank to sign some papers, which I assumed was me signing my name off the loan (mortgage) as well.

I now have just received a statement for this loan account. All is good and he has been paying the repayment but I thought I was no longer on it. He has been collecting my mail with these statements since and I only found out because my sister works in the post office sorting mail. I have since been into the bank and changed my details and they said I would have to get a solicitor to get my name off the loan.

I did speak to him and he said he didn't take my name off because they means he would have to redraw the loan (of course that would be the case) I really cannot afford a solicitor and do not believe I should be the one paying anyway.

Any information would be a huge help.

Thank you!

 

[Michael T]

Engaging a lawyer would help solve the problem in your current situation. Arguably, if you'd had a lawyer helping when you were signing the papers, they would have dealt with it then. If he doesn't want to change things, there's not much you can do without going legal. You could plead with him to just do it, but essentially, you're technically still on the hook for the mortgage at the moment. If you have absolutely no money, you may be entitled to Legal Aid, so perhaps call Legal Aid to see if you're eligible.

 

[Sophea]

Hi Mary, I agree with Michael, you will likely need a lawyer on this one. Do you still have copies of the forms that you signed at the bank and the forms signing over title to your ex? Usually they will not take your name of title unless you are also taken off the mortgage which normally requires refinancing as banks will not easily allow a party to remove their name from the mortgage unless they are sure the remaining party can pay it. This is a concern because as long as you are on the mortgage you will be severally liable to pay it, meaning if your ex doesn't pay it you will have to pay it and then sue your ex for his share of it.

 

[Sarah J]

Hi Mary C,

This is quite unfortunate but hopefully your ex continues to pay the repayments. Getting your name off the title deeds and having it removed from the mortgage are two different things. Generally, owners will need the bank's approval to have the title deeds changed. However, as in your case, banks will not easily remove a name off the mortgage. This will need to be separately negotiated with the bank as it requires a rearrangement of your loan.

As the others have suggested, best to talk with a lawyer no the matter. Also, you can contact the Financial Ombudsman Services and enquire about your position here. The FOS is a free service that assists consumers with information and dispute resolution against financial institutions (including banks). It is worthwhile giving them a call and seeing if they have encountered similar situations and what advice/options they have for you.