Ex spouse refinanced SBA disaster loan without my permission

by CJ

My ex wife refinanced an SBA disaster loan for $10,000, approx three years into the contract WITHOUT MY PERMISSION OR PRIOR KNOWLEDGE. The original term of the loan was 10 years, commencing in 1995. In 1997, the judge in our divorce ordered her to repay the loan, as she resided in the home.

The ex had the terms changed from a 10 year to a 30 year loan. The original loan was due to be paid off in 2005. She received several deferments (one hardship, the other due to Katrina), which now adds two additional years to the loan. The loan still has a balance of almost $6K. In February 2010, the judge has still ordered her to make the payments on this loan.

In September 2010, she somehow changed the address on the loan to have the bill come to me, in another state. I mailed a "cease and decist" letter to them, and included the three judgments instructing my ex to continue to make the payments; the judgment also states that I am not bound to make any reimbursement to her for payment of the loan.

The SBA is now calling me at my home number on a daily basis. They continue to mail the monthly statements to my home address, which come in both of our names, which makes it difficult to have her name removed from my address. My significant other owns the home where we reside. The SBA has mailed certified letters to her at my home address, which I have not accepted. My sig. other has spoken to our mail carrier, who reports he will pull any mail with her name on it and return it to the SBA, stating she does not reside here.

Considering that I signed a loan at specific terms of 10 years, and that my ex spouse refinanced the loan to a term of 30 years without my consent or knowledge, and there is an order for my ex to make these payments, can I still be made legally bound for this loan? It appears the SBA has ignored my letter.

Comments for Ex spouse refinanced SBA disaster loan without my permission

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Dec 07, 2010
Loan fraud by spouse
by: Gerri

CJ -

I am so sorry to hear what you have gone through. This sounds like loan fraud, plain and simple. I don't know whether the bank was complicit or was also duped by your ex, but either way you are going to need an attorney to determine how to proceed. Unfortunately loan fraud and identity theft by ex-spouses or family members is not uncommon, and it can be very difficult to clean up. However, given the seriousness of the matter, you really need to get some legal advice.

I would recommend you consult an attorney with expertise in these matters. Since you are in California, I would recommend you start by contacting Robert Brennan, the coauthor of the California edition of our book. Feel free tell him we sent you. He has expertise in credit reporting, identity theft, and debt collection, all of which may come into play here. His website is www.BrennanLaw.com.

We hope Bob is able to help you get this straightened out. We would be interested in hearing how it turns out for you. Hang in there.

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