Posted on: 26th Jan, 2009 07:48 am
My husband and I owned a house together. We divorced and the bank offer us a deed in leiu of foreclosure. He took this and was paid an unkown amount of money, I decided not, and filed bankruptcy because I knew they could come back and say the house did not sell for enough so I would have to pay the difference. The bank did this deed in leiu before I did the bankruptcy. Is this legal? I was still 1/2 owner of this house when my husband signed this and received money for it.
Welcome Rockbar,
In case of a deed in lieu, the lender forgives the deficient amount resulting from the sale of the property. So there is no way that the lender can claim the deficient amount from you.
Secondly, as you have mentioned that your husband has received an unknown amount from the lender, that means the property was not sold for a deficient amount. If you are one of the owners of the property, you should received a certain amount from the sale proceeds.
In case of a deed in lieu, the lender forgives the deficient amount resulting from the sale of the property. So there is no way that the lender can claim the deficient amount from you.
Secondly, as you have mentioned that your husband has received an unknown amount from the lender, that means the property was not sold for a deficient amount. If you are one of the owners of the property, you should received a certain amount from the sale proceeds.