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What a Mess!!! Please Help

Posted on: 27th Aug, 2010 06:37 pm
i have been separated from my husband since july 22, 2007. he has lived in the marital home since that time.

i resided in an apartment from july 2007 to march 2008, and i purchased a condominium in march 2008 as my primary residence when it became clear that my husband was not open to reconciliation.

a limited liability corporation (llc) that my husband founded and operated for nearly a decade, went out of business more than a year ago.

my husband is in the process of filing bankruptcy. my name is not associated with any of his personal or business debts, other than the mortgage and home equity line of credit on the marital home.

my husband is unable, due to his financial circumstances, to consistently make the mortgage and home equity loan payments on the marital home, and i can no longer afford to assist him by covering the shortfall.

i have asked my husband on many occasions to cooperate in selling the marital home so that my good credit rating can be preserved, but he refuses.

i filed a petition for the dissolution of marriage in july of 2009, but my husband did not show up for the final hearing that was scheduled for september 8, 2009. i filed again on august 10, 2010 and i am hopeful that he will cooperate this time in finally ending the marriage.

in the dissolution agreement, my husband agrees to assume full responsibility for the mortgage and home equity loan payments on the marital property. however, my name cannot be removed from the mortgage loan until he is able to refinance (which won’t be possible since he’s filing bankruptcy).

what are my best options in dealing with this nightmare? btw -- the marital home has a first mortgage of $75,000 and an equity line of credit of $25,000. the home is worth only about $50,000 in this market.
Hi Guest!

Welcome to forums!

I must say that you're in a tough situation. Unless your husband refinances the mortgage in his name, your won't be able to remove your name from it. Once your husband files bankruptcy, he will get a discharge and thus won't be personally liable for paying the loan. In that case, the lender can come after you to recover the dues or foreclose the property which will have a negative affect on your credit score.

After your husband's bankruptcy gets discharged, you can ask him to transfer the property to you and you can sell it off and get rid of it. You can use the sale proceeds to pay off the mortgage.

Feel free to ask if you've further queries.

Sussane
Posted on: 27th Aug, 2010 09:14 pm
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