is my new spouse liable for my premarital home in foreclosur

redncgrl79 · Joined: 12 May 2008 Posts: 1 1.42 Dollars($)

is my new spouse liable for my premarital home in foreclosure? i bought a house in 04 while single, refinanced in 4/06 while single for $44k cash out. i got married in 1/08 and was served with foreclosure papers 3/08. is my new spouse liable for this debt? what can happen to him if i do nothing to stop the foreclosure? he owns a home in his name only. should i do a DIL? or file bankruptcy? please help.

jbarto65 · Joined: 04 Nov 2007 Posts: 627 0.00 Dollars($)

I think that since you had the debt before that marriage and his name is not on the mortgage then he should not be affected at all. You should do what you can though to try and avoid foreclosure, it will affect your credit for a long time to come, just like bankruptcy. Can you find someone to buy the home? If you and your spouse decide that you want to buy a house years down the road, this information will come up on you and hinder your chances for a joint loan on a home. Even if you don't think it would happen years down the road you never know what will come up and you wnat to make sure that you give your new marriage the best start possible both financially and otherwise. Goodluck, hope you can find a way to resolve this without having a negative affect on your credit, keep us updated.

larry · Joined: 27 Jun 2007 Posts: 3051 428.03 Dollars($)

Hi redncgrl.

Welcome to the forum.

Is your new spouse on the mortgage? If not then he is not liable for the debt as you bought and refinanced the mortgage before the marriage.

I think you should try to avoid foreclosure. Talk with the lender ASAP and see if he can offer you any solution for you. Do you owe more than what you owe?

Best of luck,
Larry

Jessica · Last edited by Jessica on Thu May 22, 2008 5:07 am

Hi redncgirl,

I don't think the premarital home foreclosure can affect your spouse if he doesn't have his name on the loan or on the deed. But why aren't you trying to stop the foreclosure? there are so many ways to avoid it. Just have a look at some of the foreclosure prevention ways and ask your lender if it's possible for him to accept any of them. By the way, it's been quite some time since you were served with the loan papers. So, contact your lender quickly and see if he's willing to co-operate with you.

gmakerley · Posted: Tue May 13, 2008 9:23 am Post subject:

your spouse should not be affected.

if you are unable to make payments, the first thing you ought to try to do is to sell the home. if you owe more than it is worth, you should seek a short sale, if that is possible. if you cannot sell it, then a deed-in-lieu might be the next best bet. foreclosure and bankruptcy will adversely affect your credit for years to come.

purchasing a home in the future might not be affected, as your husband would be able to be the sole borrower (perhaps).

Guest 0.10 Dollars($)

thanks guys. i don't want to keep the home. i owe $89k and it's only worth about $65k. i wasn't seeking the loan when i got it, they called me up and offered me $45 k cash out and i told them i didnt make enough $ but they insisted that i qualified. it was ameriquest which i understand went out of business. it is now citiresidential that is foreclosing. how does the short sale work? thanks for all your help.

gmakerley · Posted: Tue May 13, 2008 12:01 pm Post subject:

as for the short sale, strive to find a realtor who is up to speed on such things. between you and the realtor, you'll need to convince your mortgage lender that you'll be unable to meet the full debt upon sale.

they'll require some evidence that this is the case - comparable sales that support your assertion of value, for instance.

cliff · Posted: Tue May 13, 2008 6:50 pm Post subject:

If you do not want to keep the home then a short sale will be your only option, because lenders do not like to do deed-in-lieu on properties that are upside-down.

In order to do a short sale the lender will require a short sale packet which includes the following: hardship letter, past two years tax returns, personal financial statement, pay stubs, sales contract, HUD 1 and pre-approval letter for your buyer.

I definitely agree with Jessica and George. There are many ways to avoid foreclosure so you should Jessica's link. In addition, if you decide to do a short sale you want to choose a realtor who has short sale expertise. In other words ask them how many they have done. If it is less than ten find another realtor.

Hope this helps. Very Happy

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