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Deficiency Judgement

Posted on: 01st Aug, 2011 10:05 pm
During my marriage we built a home with the assistance of the USDA in Texas. They granted a loan to my then husband since he was the only one working at the time. I was later added to the deed at closing.

Fast forward 6 years and we are now divorced. In our divorce he was left with our home. The home was later placed under foreclosure and auctioned leaving a deficiency of 39K. I've been told that because I was included in the deed I am responsible for paying the debt and since they are unable to garnish my ex husband's wages I've been advised that they can garnish mine should I not make arrangements to pay.

I am seriously stressing out, I've been paying for two years only to find out that my debt was recently given to another CA. They are wanting to settle for a lump sum that as a single parent I can't afford. Is there anything else I can do?
No, you're not responsible for paying the debt as your name is not mentioned on the mortgage docs. Your name is mentioned only in the property deed which makes you one of the owners of the property. It is your ex who is responsible for the payments. You should immediately contact an attorney and check out what steps you can take against the lender for misguiding you.
Posted on: 02nd Aug, 2011 01:43 am
Thanks for responding. What type of attorney should I contact? I have gone to see an attorney but didn't get anywhere.
Posted on: 03rd Aug, 2011 08:42 pm
You may contact a real estate attorney in this regard.
Posted on: 03rd Aug, 2011 11:49 pm
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