Posted on: 29th Oct, 2009 08:56 am
a friend is getting divorced. she and her ex-husband both have their name on the title, but the loan is in her name only because his credit wasn't good enough to refinance....
she can't sell the house because she is upsidedown in equity... (double mortgage) and she can't afford to continue paying the monthly payments. she already went through a bankruptcy because of the debt she picked up from him, a year ago... but she still has the house loans.
if they foreclose, will they go after the ex-husband because his name is on the title of the house which is the security for the loan?
she can't sell the house because she is upsidedown in equity... (double mortgage) and she can't afford to continue paying the monthly payments. she already went through a bankruptcy because of the debt she picked up from him, a year ago... but she still has the house loans.
if they foreclose, will they go after the ex-husband because his name is on the title of the house which is the security for the loan?
Hi catodd!
Welcome to forums!
Though the ex-husband's name is on the property deed, the lender will not go after him. As the mortgage is in the name of your friend, she would be responsible for paying off the balance amount. Your friend can apply for a deed in lieu of foreclosure with the lender and surrender the property. Though the credit effects would be same as foreclosure, she won't be liable for the deficient amount.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Though the ex-husband's name is on the property deed, the lender will not go after him. As the mortgage is in the name of your friend, she would be responsible for paying off the balance amount. Your friend can apply for a deed in lieu of foreclosure with the lender and surrender the property. Though the credit effects would be same as foreclosure, she won't be liable for the deficient amount.
Feel free to ask if you've further queries.
Sussane