Posted on: 11th Mar, 2009 12:38 pm
Client and his ex divorced years ago. Only hHis name was on the deed for the marital residence; only his name was on the mortgage -- wife has a terrible credit history. Through the divorce, wife got the house, but the property settlement never mentioned the mortgage.
Husband then filed for bankruptcy, and has been contesting various support orders. The mortage was listed as a debt on the bankruptcy petition. Wife apparently has made mortgage payments, but the property is subject to foreclosure as a.) husband does not live there as is required per the mortgage, and b.) the property is not insured (husband tried but can't get insurance for a property he doesn't live in or doesn't have a rental agreement.) The ex's attorney had asked him to deed the property to the ex -- the bank said no way.
Client husband just wants out, especially since it stands in his way of getting another mortgage. His bankruptcy attorney says the mortage debt was discharged through bankruptcy, although the bank takes a different view. He's stuck for a house the court says is the property of the ex. DIL was proposed by the bank in 2007, but reading the posts here, it sounds like this may doom his credit. Any thoughts for extricating oneself from this situation?
Husband then filed for bankruptcy, and has been contesting various support orders. The mortage was listed as a debt on the bankruptcy petition. Wife apparently has made mortgage payments, but the property is subject to foreclosure as a.) husband does not live there as is required per the mortgage, and b.) the property is not insured (husband tried but can't get insurance for a property he doesn't live in or doesn't have a rental agreement.) The ex's attorney had asked him to deed the property to the ex -- the bank said no way.
Client husband just wants out, especially since it stands in his way of getting another mortgage. His bankruptcy attorney says the mortage debt was discharged through bankruptcy, although the bank takes a different view. He's stuck for a house the court says is the property of the ex. DIL was proposed by the bank in 2007, but reading the posts here, it sounds like this may doom his credit. Any thoughts for extricating oneself from this situation?
Hi duffy,
Did the husband include the mortgage of the property in his bankruptcy? If yes, then that mortgage debt has been discharged through bankruptcy. In that case, the husband is not liable for the mortgage. Did the bank gave any reason as to why they are taking a different view? I think the husband should show his bankruptcy discharge papers to the bank and clear off the issue. He may even ask his bankruptcy attorney to speak to the bank in order to clear it off.
Thanks.
Did the husband include the mortgage of the property in his bankruptcy? If yes, then that mortgage debt has been discharged through bankruptcy. In that case, the husband is not liable for the mortgage. Did the bank gave any reason as to why they are taking a different view? I think the husband should show his bankruptcy discharge papers to the bank and clear off the issue. He may even ask his bankruptcy attorney to speak to the bank in order to clear it off.
Thanks.