I bought a house from a couple divorcing, I am paying a mortgage through a bank. ?

Question

The wife was not the original owner, the husband was. Everything was in the husbands name only. Can the wife go through the court system and get the house back even after we've been the new owner (with the deed) for the past five months?

Answer 1

If you are not on the deed and do not have the mortgage in your name, the wife can have claim to a portion of the home, if there is any equity in it.  It doesnt matter if she was not the original owner, or if she is on the mortgage at all (unless there was a pre-nup).  If through the divorce, she is able to prove that she has put equity in the home (even by just staying at home raising kids), she is entitled to a portion of the equity.  If she is found to be entitled to any, its the husbands responsibility to either buy her portion out, or sell the home and give her the equity the court may feel she is owed.  

This may not be the case at all if the house is worth more than is owed etc.  

Answer 2

Your title insurance should cover you.

Answer 3

Your bank's attorney would have done a title search before funding the mortgage. You would not have been able to get the house if the seller did not have clear title.

The wife may go to court to force her husband to pay her a share of the proceeds from the sale, but the house is yours.  

Answer 4

If the wife as not on title then you have no problems. There are a couple of things in your favor.

#1 The title company would not have insured the property had there been another person  on the title and they did not sign a release. There has to be a clean title before a title company would insure it.

#2  The lender would not have funded you mortgage without clear title to the property you purchased.

If you did not get a title policy to insure yourself at the close of the purchase transaction you should have. Most people are under the impression that the title insurance that is purchased by the buyer or home owner upon the completion of a purchase or refinance transaction covers the individual which is not true. This policy only covers the lender and no one else.

If the wife's name was not on title and the property was purchased prior to she and her husband getting married she has little or no chance of winning any lawsuit especially against you.

If the property was purchased during the marriage to her husband then she might have a possible chance of winning a lawsuit.

I hope this has been of some use to you, good luck.

"FIGHT ON"