Posted on: 15th Oct, 2009 01:08 pm
i already posted in a different section and answers are slim so i'm going to post here.
i've been divorced for 1 1/2 years. according to the terms of the divorce, my ex was awarded the home and supposed to have refinanced when equitably stable and not defalut or incur further debt on the first and second mortgage or any accounts related. also, i am deemed finacially relieved of any financial matters relating to the home and he is supposed to defend me in these matters. well, he never refinanced in his name so my name is still on the first and second mortgage. i have not lived at the property for 2 years and have consistently tried to get him to refinance to remove my name from both mortgages. since the divorce he has had late payments on the first mortgage, is 4 months behind on the first mortgage, is laid off, got his live-in girlfriend pregnant, and has received a notice of foreclosure from the first mortgage company. he has 30 days to seek couseling from hud (georgia). he has never been late on the second mortgage.
he was dead-set on filing ch 7 bankruptcy to liquidate all his debt. i consulted with 5 differnet attorneys and they told me that the mortgage company would come after me if he did this. i believe i have finally convinced him to try a short-sale first. but this does not take care of the second mortgage. i am still liable. he has already found a short sale buyer. he hasn't done anything to get the short sale approved yet, hud is telling him not to call the mortgage company or they will foreclose immediately. he offered me a chance to take over the home, but i am in no position to take on that much debt and can't afford the mortgage payments anyway.
most of the attorneys i met with said i could get him to sign a legal document that releases me of all financial obligation before he does anything and will prevent the mortgage companies from coming after me for payment. is this true?
what can i do to protect myself? what is the best option for our situation? we have around 25 days to clear this up. what do i do????
p.s. he was denied loss mitigation last december, they will not allow him to refi because he is unemployed, and according to the mortgage company he does not qualify for any other assistance plans they offer because he is behind.
i've been divorced for 1 1/2 years. according to the terms of the divorce, my ex was awarded the home and supposed to have refinanced when equitably stable and not defalut or incur further debt on the first and second mortgage or any accounts related. also, i am deemed finacially relieved of any financial matters relating to the home and he is supposed to defend me in these matters. well, he never refinanced in his name so my name is still on the first and second mortgage. i have not lived at the property for 2 years and have consistently tried to get him to refinance to remove my name from both mortgages. since the divorce he has had late payments on the first mortgage, is 4 months behind on the first mortgage, is laid off, got his live-in girlfriend pregnant, and has received a notice of foreclosure from the first mortgage company. he has 30 days to seek couseling from hud (georgia). he has never been late on the second mortgage.
he was dead-set on filing ch 7 bankruptcy to liquidate all his debt. i consulted with 5 differnet attorneys and they told me that the mortgage company would come after me if he did this. i believe i have finally convinced him to try a short-sale first. but this does not take care of the second mortgage. i am still liable. he has already found a short sale buyer. he hasn't done anything to get the short sale approved yet, hud is telling him not to call the mortgage company or they will foreclose immediately. he offered me a chance to take over the home, but i am in no position to take on that much debt and can't afford the mortgage payments anyway.
most of the attorneys i met with said i could get him to sign a legal document that releases me of all financial obligation before he does anything and will prevent the mortgage companies from coming after me for payment. is this true?
what can i do to protect myself? what is the best option for our situation? we have around 25 days to clear this up. what do i do????
p.s. he was denied loss mitigation last december, they will not allow him to refi because he is unemployed, and according to the mortgage company he does not qualify for any other assistance plans they offer because he is behind.
Hi mgan,
As your divorce decree states that your ex would be solely responsible for the property, signing a legal document releasing you of financial obligations can help you. Moreover, your attorneys have suggested so, the document can be helpful for you. However, you should draft the legal document from an attorney.
A short sale is a good option rather than filing bankruptcy. It is true that you and your ex both would be liable for paying off the second mortgage dues. But, in case, your husband signs the legal document then the lender will not sue you for your dues.
Thanks
As your divorce decree states that your ex would be solely responsible for the property, signing a legal document releasing you of financial obligations can help you. Moreover, your attorneys have suggested so, the document can be helpful for you. However, you should draft the legal document from an attorney.
A short sale is a good option rather than filing bankruptcy. It is true that you and your ex both would be liable for paying off the second mortgage dues. But, in case, your husband signs the legal document then the lender will not sue you for your dues.
Thanks
OMG! Thank you so much!! This is exactly what I wanted to know! So if he decides to file for bankruptcy if the short sale isn't approved, if I have that legal document that releases me of responsibility (that he would sign), then would the bankruptcy and foreclosure still be posted to my credit report even if they can't sue me? Or can I fight this too?
mgan... If your name is not on the property deed, then it won't be mentioned in your credit report.
My name is still on the deed, we never did a quit claim. This was supposed to happen when he refinanced. I spoke with the mortgage company, they told me they typically override any divorce court orders.
Can anyone tell me that its REALLY true that if I get a liability waiver form signed that the mortgage company can not come after me?? I need to make sure before I pay all this money to an attorney to have it done.
Can anyone tell me that its REALLY true that if I get a liability waiver form signed that the mortgage company can not come after me?? I need to make sure before I pay all this money to an attorney to have it done.
Hi mgan!
Welcome back to forums!
I do not think that a mortgage company can override a divorce court order. However, it would be a better option to contact a bankruptcy attorney and take his opinion in this regard.
Feel free to ask if you've further queries.
Sussane
Welcome back to forums!
I do not think that a mortgage company can override a divorce court order. However, it would be a better option to contact a bankruptcy attorney and take his opinion in this regard.
Feel free to ask if you've further queries.
Sussane
Hi Sussane,
I DID speak to a bankruptcy attorney, five of them and I don't trust them. They keep give me options to choose from, I don't want options. Only one attorney mentioned a liability release signed by the ex-husband. I don't believe its true. They would neither confirm or deny when asked because I hadn't hired them yet. I want something concrete and a plan of action that I can do, not an option. If I play the option game, then what happens when it doesn't work? Oh, I'll just pay more money and try something else. I don't have that kind of money. I can't afford an attorney as it is. So, I give up. Oh, and I did speak with my mortgage company. The told me they DO typically override the divorce court orders.
I cancelled my last appointment with the attorney.
I'm just going to try and refinance in my name, if that doesn't work then I'll go through loss mitigation. I amso tired of this.
I DID speak to a bankruptcy attorney, five of them and I don't trust them. They keep give me options to choose from, I don't want options. Only one attorney mentioned a liability release signed by the ex-husband. I don't believe its true. They would neither confirm or deny when asked because I hadn't hired them yet. I want something concrete and a plan of action that I can do, not an option. If I play the option game, then what happens when it doesn't work? Oh, I'll just pay more money and try something else. I don't have that kind of money. I can't afford an attorney as it is. So, I give up. Oh, and I did speak with my mortgage company. The told me they DO typically override the divorce court orders.
I cancelled my last appointment with the attorney.
I'm just going to try and refinance in my name, if that doesn't work then I'll go through loss mitigation. I amso tired of this.