Posted on: 24th Nov, 2007 09:06 am
An attorney or debt collector for the mortgage company sent us a letter stating default has been made on our mortgage and that on dec 20 there will be a sale of the property at the court house. We never even moved in to this house becasue the day after sale we found termite damage that was not disclosed in the amount of 79,000 So the house is not worth a fraction of the amount of the loan. The letter Named my husband and me!!! (I have all paper work and I'm not on the mortgage.The mortgage company wouldn't even talk to me because I'm not on the note. I am 100% positive I was only quit claimed on to the title. Any advice? I'm extremely nervous that this is going to effect my credit. My husband is going to try to file bankruptcy.
If you not on the mortgage you got nothing to worry about as far as your credit is concerned. As far as termite damage you should have had inspection prior to sale. You should also speak with real estate attorney in regards to what rights you have as far as litigation is concerned.
We did have a pest inspection it had shown that there was once evidence but it was treated, removed, and replaced. Also there was another company that had been preventatively coming yearly to make sure there was no reinfestation. The pest companies insurance stated that due to his type of insurance they were only liable for 1 years damages, but who can tell how much damage occurred in one year They offerred us 9000, We have saw a lawyer but they want alot of money upfront that we do not have and they also said it could be years before anything happens. This was our first house and we were very naive. Do you have any knowledge on my husbands bankruptcy options??
Hi Kimhicks,
Welcome to this forum.
I think your husband should immediately talk to the lender and try to avoid foreclosure if it is possible. You can at least think about Short Sale or Deed in Lieu of foreclosure. These will affect you credit less than foreclosure.
I think Bankruptcy should be the last option to choose. BK will hurt your credit to a great extent. It will drop almost 300 points and will be shown in the credit report for 7 years. So if possible you should avoid BK and Foreclosure.
Thanks,
Larry
Welcome to this forum.
I think your husband should immediately talk to the lender and try to avoid foreclosure if it is possible. You can at least think about Short Sale or Deed in Lieu of foreclosure. These will affect you credit less than foreclosure.
I think Bankruptcy should be the last option to choose. BK will hurt your credit to a great extent. It will drop almost 300 points and will be shown in the credit report for 7 years. So if possible you should avoid BK and Foreclosure.
Thanks,
Larry
If your husband files BK you may have to file with him.
Short Sale or Deed in Lieu of FC can still show up on your credit report as a Foreclosure. Once the FC proceedings start..the lender will report an M-9 on your credit report.
You can still purchase a home in 2yrs if you file BK 7....or if you have a foreclosure. BK 13 requires 12months......
With FHA you can do this...and get low rates like 6.5%.....it's not the end of the world. :D Sorry that you have to go through this....but I will speak to a BK attorney...and try to take the 9k. In smalls claims court you will only get 5k in most states....some states are a lot lower
Short Sale or Deed in Lieu of FC can still show up on your credit report as a Foreclosure. Once the FC proceedings start..the lender will report an M-9 on your credit report.
You can still purchase a home in 2yrs if you file BK 7....or if you have a foreclosure. BK 13 requires 12months......
With FHA you can do this...and get low rates like 6.5%.....it's not the end of the world. :D Sorry that you have to go through this....but I will speak to a BK attorney...and try to take the 9k. In smalls claims court you will only get 5k in most states....some states are a lot lower
