Posted on: 27th Apr, 2011 06:27 am
hello...my husband and i are in the middle of a drawn out divorce in pa. we own a home together that he still lives in but i just found out that he has not paid on the mortgage in over 2 years and the home is about to be foreclosed upon. the man makes well over 6 figures and has no reason to have let this happen. he is now claiming he will just file bankruptcy to avoid foreclosure but being that my name is on the mortgage and that our divorce is not final and not equitable distribution has occured can this happen?? if so, will i have to go through bankruptcy as well? i refuse to sign a loan modification as it will hold me to the mortgage and being that we are in the process of divorce and i'm not living in the home..i have no intention to agree or sign on to a modification as it will only prevent me from being able to get a new loan on my own. i want him to sell the house but he is refusing to do so. my credit is destroyed and i want out of this mess!
Thats a tough one. If you are on the loan, you are responsible, even with a divorce decree, the lender doesnt care. You need to know if your state is a non-judicial foreclosure state and if your note has a "right to sell" clause and if your state allows for defeciency judgements. If you lose the house to foreclosure, your credit is shot. Then you have to spend the next several years to repair your credit. If the house is modified, then atleast the loan is current. If you short sell the house, the lenders will also take that as a foreclosure against you for when you want to get your own home. If he is not paying and you want to be protected, go back to court and demand that the house be sold. Try to speak with the ex and see if you can do a deed in lieu. If you home is upside down, then you really cant get out from it cleanly. You need to find the quickest and easiest way to get out from it, foreclosure, deed in lieu, short sale, and then be prepared to have to rebuild your credit. Good luck