The problem is that the divorce is an agreement between you and your spouse. Your mortgage is an agreement between you and the bank. The bank doesn't care that you have divorced-they still loaned you the money. Is there any way he can buy you out of the home so he has his own mortgage? Since the divorce is final perhaps it's too late for that?
Did you call the mortgage company (of the house you used to share with ex)? I'd give them a call and tell them that he bought you out and you are not responsible and it is affecting your credit. I'm no expert but I think they need to clear your name. Give them a call and see what happens. At worst, couldn't hurt. At best, they can help clear your report. I actually just had an experience where I was being told a collection agency was going to come after me (for something unrelated to mortgage). I called the place I owed (sure I had paid) and they said it was an error in their system and I had been billed twice. They cleared it immediately. So it's possible they just haven't entered everything in their system. Seems if he bought you out and you were told you are not responsible, if he doesn't pay...why should it affect you? Take some time to make some calls. It can be a pain and they might give you the run around, but it's important and you can sort this out. Good luck.
This is a very sad but very common situation that any lawyer worth a hill of beans would have assurred was taken care of prior to the divorce being finalized.
The answer is NO the bank will not release you from the responsibility of paying for the mortgage, you are responsible for every cent you borrowed and own nothing to show for it.
If you need a new home loan and he has ruined your credit with the old mortgage by not paying you will have no choice but to try a qualify for a non-qualifying mortgage (they call them liar loans). Most mortgage specializing companies have liar loans, you will pay excessive point to get the loan and a really high interest rate but prior to the mortgage melt down in our economy almost anyone could get a liar loan.
Lesson for everyone, make sure your soon to be ex, if he is buying you out, has to refinance the mortgage and anything else that is financed so he can not still hold you captive by ruining your creidt and keeping your debt to income ratio incorrectly calculated against you.
Did you try bringing in your divorce order to the bank and asking that they file it in their head office to remove you from the mortgage?
Legally, you are not responsible for the mortgage on the date that the court order was granted....so the banks will recognize it when you take the order in. The bank should take a copy and make the necessary changes. I'm hoping your court order states that you bought him out...
A similar incident happened to me but it wasn't the mortgage...and I took the full court order in and got the banks to change things.