Legal Question in Real Estate Law in Minnesota

Mortgage/Lien/Divorce Question

My husband's ex was awarded the house in their divorce. He signed a quit claim deed that said he would get his $30k equity upon the sale of the home or when the youngest child was 18. My husbands attorney filed a lien with the county for the $30k (standard practice I guess). She was no required to refinance to remove his name from the mortgage though. She is telling us now that she wants to pay off the lien by taking out a ''home equity loan''. We do not understand her motivation but both of us are of the understanding that even if she pays off the lien that his name will remain on the mortgage until she refinances or sells the home. She is telling us that when the lien is paid her mortgage company will simply re-write the mortgage without his name on it. We don't think this is right and don't understand why she'd do this. Could what she's saying be possible?

Asked on 7/06/09, 1:24 pm

3 Answers from Attorneys

Steven Vatndal Law Office of Steven J. Vatndal
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Re: Mortgage/Lien/Divorce Question

It is possible for her to refinance in a way that removes your husband's name on the mortgage and pays him the $30,000. The bank needs to record a satisfaction of mortgage or release of mortgage (either will work for your husband's sake) that refers to the mortgage that has his name on it. More importantly, the bank also needs to either give him a copy of the mortgage note marked paid or cancelled. He will, appropriately, be asked to sign a release of his lien on the property and be given a check for the appropriate amount. All this should occur at the same time at a closing, and the check should be either a cashiers check or certified.

You can e-mail me directly with any further questions at

svatndal@hickorytech.net

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7/06/09, 1:53 pm
Steven Vatndal Law Office of Steven J. Vatndal
0 users found helpful
0 attorneys agreed

Re: Mortgage/Lien/Divorce Question

It is possible for her to refinance in a way that removes your husband's name on the mortgage and pays him the $30,000. The bank needs to record a satisfaction of mortgage or release of mortgage (either will work for your husband's sake) that refers to the mortgage that has his name on it. More importantly, the bank also needs to either give him a copy of the mortgage note marked paid or cancelled. He will, appropriately, be asked to sign a release of his lien on the property and be given a check for the appropriate amount. All this should occur at the same time at a closing, and the check should be either a cashiers check or certified.

You can e-mail me directly with any further questions at

svatndal@hickorytech.net

Read more
7/06/09, 1:53 pm
Steven Vatndal Law Office of Steven J. Vatndal
0 users found helpful
0 attorneys agreed

Re: Mortgage/Lien/Divorce Question

It is possible for her to refinance in a way that removes your husband's name on the mortgage and pays him the $30,000. The bank needs to record a satisfaction of mortgage or release of mortgage (either will work for your husband's sake) that refers to the mortgage that has his name on it. More importantly, the bank also needs to either give him a copy of the mortgage note marked paid or cancelled. He will, appropriately, be asked to sign a release of his lien on the property and be given a check for the appropriate amount. All this should occur at the same time at a closing, and the check should be either a cashiers check or certified.

You can e-mail me directly with any further questions at

svatndal@hickorytech.net

Read more
7/06/09, 1:56 pm

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