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Ms F
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0.10 Dollars($)
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Post subject: BK after divorce? |
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| Hi! I am looking for some insite on my situation. I got divorce 4 years ago and was quick claimed off the mortgage. Unfortunatly my ex has defaulted and they are getting ready to forclose on the property. As I am still on the "loan" I am still liable for it. Now my credit is not horrible but not the best. The worst of it is from him defaulting over the last few years. I have talked to some of his neighbors and it seems he has moved out of the home and per the bank he will not respond to calls. The house is over $130,000 due and is only worth MAYBE $60,000. I dont want the home or the payment but dont want the bank to come after me now. Would I be better off doing BK or letting it go? I would like to buy my own home so the best option for the future is best . Thank you so much for any help |
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smithsussane
Joined: 18 Sep 2008
Posts: 3709
Location: Alaska
556.69 Dollars($)
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Hi Ms F!
Welcome to forums!
You should note that a borrower cannot be quitclaimed off from the mortgage. A quitclaim deed will only help you in removing your name from the property deed. If you want to remove your name from the mortgage, the co-owner of the property will have to refinance the loan. I suppose your ex did not refinance the loan in his name. In that case, you will still be considered liable for the mortgage.
If you let the property go away, then the lender would foreclose the property which will have a bad effect on your credit score. It would be lowered by 250 points and you won't qualify for a mortgage in the next 3-4 years. Moreover, you would be liable to pay the balance amount. In my opinion, you should contact your ex-husband and ask him to apply for a deed in lieu of foreclosure. Though the credit effect would be the same as foreclosure, you won't be liable for the deficient amount resulting from the sale of the property.
Feel free to ask if you have further queries.
Sussane |
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Ms F
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Post subject: BK after divorce |
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Sussane,
Thank you so much for your help! I am not able to contact my ex due to invalid phone numbers and I have no idea where he lives now. If I filed bankruptcy would I be off all obligations for the home and forclosure? I spoke to the bank today and the forclosure should be initiated on Monday but could take months. Thanks for your help again! |
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adonis
Joined: 22 Oct 2005
Posts: 3852
Location: ALASKA
120.89 Dollars($)
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Hi Ms F,
If you file bankruptcy, it will stop the foreclosure proceeding immediately. If you file Chapter 7, then you can surrender the property to the lender who will foreclose it and recover the dues. If you reaffirm the loan, then you will become responsible for the mortgage dues again.
If you file Chapter 13, then the lender would give you a payment plan to pay off the dues within 3-5 years. This will help you in saving the property.
_________________
Procrastination is the enemy of your financial sucess |
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Anyknowledge
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Original Warranty Deed is in my name only. Mortgage paperwork filed with R/D's office has both ex and my names on it.
Somewhere in my fooooolish attempt to show my concern and to take her sorry tail and her 3 kids (one of whom was 32 at the time) out of the welfare system and give them a good home i said that I wanted to make sure the house was hers - no matter how we ended our marriage not that i thought we'd end our marriage but of course who doesnt think that in the first 5 months of a marriage - so i signed a quit claim (joint tenacy) deed - thinking that i was going to make sure she had a right to the home because her name was not on the original deed. 12 years , 5 of those years in separation, and 1 year into my current marriage (yes the sun do shine again and God is good) My wife requests a look at our borrowing potential and sees a very recent hard inquiry on my credit report that both she and i were completely unaware of happening as well as why it would have happened. We contacted the company that made the Inquiry to find out that my ex wife - separated over 5 years and divorced over 1 year has just a month ago, been given approval for a repayment agreement and when I asked the mortgage company about it - they said yes - the mortgage which they say is only in my name (unknown yet how that happened because it was originally in both ours) it's in loss mitigation and repayment agreement made based on MY salary and MY credit report.
It was late friday when all this came to light and I will contact our lawyer on Monday before I talk to the mort. company again but I can't sleep because it's working my head and I just keep running all these things through my head and wondered if maybe someone who is awake would have an answer to some of them to help me sleep a little better.
1. Ex wrote both our names in Grantors - only hers in Grantee. She's not even on the original Warranty deed. And yes i signed it but when i looked at it i thought I thought it simply meant i'm on deed and now she is too. I paid the mortgage (punctually) when i was in the home. Hell, i worked 2 jobs, 18 hours a day but she decided that she'd skip a few payments because her daughter needed modeling lessons. The first overdue notice that i FOUND in a drawer sent me over the limit and i left for good. Anyway - according to the r/d's office - there is Orig. Deed. (my name only) Original and now assigned mort. with both our names on them and Quit Claim (joint tenancy) that clearly states me and her (grantors) and her as grantee. Which means, with the mortgage in default status I can't even make an agreement to short sale it without her approval - but my wife says that she doesnt think the Quit claim is proper document because there was a lien on the home and a mortgage company that would have to agree to it - and that was never done because I simply figured i was adding ex wife not taking me out of property rights.
2. I simply do not understand this repayment agreement handled by ex only using my information on a 1 year past due payments home in MY name without my approval or authorizations.
So anyway - The mortgage company says that mine is the only name on the mortgage so I faxed over a request to remove from loss mitigation as well as remove ex from being able to speak to them concerning the mortgage. I also immediately placed 90 day fraud alerts with credit bureaus to curb whoever is obviously using my personal information so freely.
I gotta admit it felt good to get all that out. and i sure hope the lawyer at the very least can help direct me out of this situation. |
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Niicss
Joined: 03 Oct 2005
Posts: 2617
Location: New Jersey
409.01 Dollars($)
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If your name is on the property deed, then your ex-wife won't be able to transfer it in her name without your signatures. You will have to transfer the property in her name by signing a quitclaim deed.
If you are responsible for the mortgage then you should be contacted for the mortgage dues. You've taken the right decision by asking the mortgage company to deal with you directly regarding the mortgage. |
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Rory
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Post subject: Deficiency Judgement? |
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I'm hoping you can answer some questions I have regarding my situation in Michigan. Here is my dilema:
Several years ago, my wife and I refinanced our house. Days before the closing, the lender learned that my factory had suddenly closed and insisted that my name be removed from all loan documents, making my wife the sole borrower. She had very little income, but the mortgage broker somehow made this "no doc" loan go through.
Last year, we were living apart and I found that she had been unable to keep the payments up and the house was in foreclosure. I had purchased a home with only my name on the mortgage, and she subsequently lost the original house in a sheriff sale for about $75,000 below fair value and moved in with me.
She has no job and no assets, and we drive older cars that are in my name, and I have virtually no equity as I bought our current house FHA with little down. Now, we learn that the lender of the foreclosed house is suing her for the deficiency. From what I understand, this is rare.
Being that we really have nothing to take, why would they do this? Also, if this bank received federal bailout money for bad loans, wouldn't they be double dipping? Is my current house and 10 year old car in danger?
Thank you in advance. |
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jameshogg
Joined: 20 Dec 2005
Posts: 4291
Location: nevada
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Hi Rory,
Deficiency judgments after a foreclosure are permitted in Michigan. So, the lender can sue your wife for the deficient amount resulting from the sale of the property. If she is unable to pay off the dues, then the lender would garnish her savings account. If she is one of the owners of the current property, then the lenders can place liens on it.
Thanks |
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Rory
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Post subject: In Response to James Hogg: |
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Only my name is on the mortgage for my current home. Can they still put a lien on it because we are married? What if she files bankruptcy?
Also, she has no savings account, and my accounts are in my name only. Are my accounts safe? Is there something called a "Damaged Spouse Claim" that I can file on my behalf, and do I need to? |
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smithsussane
Joined: 18 Sep 2008
Posts: 3709
Location: Alaska
556.69 Dollars($)
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Hi Rory!
Welcome back to forums!
If your wife's name is not mentioned in the property deed, then the lender will not be able to place a lien on your property. Though she files for bankruptcy, the trustee will not be able to sell off this property to recover the dues as you own this property. As the savings account is in your name, they are safe. I do not have much idea about "damaged spouse claim". It would be a good idea to consult an attorney regarding this.
Feel free to ask if you've further queries.
Sussane |
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