Posted on: 27th May, 2011 10:36 am
the house is in my name by quit claim deed, awarded from the courts in a divorce. the mortgage is in his name. it says i have two years and then i am responsible for the mortgage. i have been making the payments for the last year since the divorce. he tried to cancel the escrow to get the money and the mortgage company has forced insurance which is increasing the house payments 200.00 a month. they would not accept the insurance i tried to submit because it was in my name. i am not allowed communication with the mortgage company because my name is not on anything. i cannot make those new payments. so my question is what happens now? if i do not make the payments it will go into foreclosure. how does that work when i own the home? i live in the home. i cannot assume the loan at this time. my current income is low. has anyone experience with this type of delimma? i appreciate your responses. thank-you
If your income is too low to support the home, and you are not on the loan, then your lender will not work with you to short sale the home (if its upside down) or try to modify your loan. If you cannot make the payments, could you rent it out until the market turns and you can sell it? If the home goes into foreclosure, then your ex will be resposible for the debt, and the derogatory credit. Some states only take back the collateral, some states are allowed to obtain a deficiency judgement against the borrower when the home sells for less than owned. Do you have any communication with the ex? The courts can tell you to do something, but the lender will not allow changing of borrowers without a refi. My recommendations, call your ex, tell him to work with you, or his credit will be ruined and a chance for a deficiency judgment. Florida for example, allows the deficiency to follow the borrower for 20 years. If he wont work with you, rent it. If that doesn't work, walk away.
Thank-you for your answer. There will be no communication with my ex, so I am afraid the foreclosure is a real possiblilty. I wonder, how does that work when my name is on the deed but not the mortgage? I understand that they will call the loan, but as far as I reside in the home? I believe there is approx 10,000 in equity in the home now, so maybe I can sell it. How long into a foreclosure process do I have to sell the house?
Hi treespirit,
As your name is not on the mortgage, the foreclosure won't affect you. After the foreclosure sale, you won't be liable for paying any deficient balance to the lender. As there is equity in the property, the lender will first recover his dues in full and he may give you the rest of the amount. You and your ex can divide the money between yourselves.
Take care.
As your name is not on the mortgage, the foreclosure won't affect you. After the foreclosure sale, you won't be liable for paying any deficient balance to the lender. As there is equity in the property, the lender will first recover his dues in full and he may give you the rest of the amount. You and your ex can divide the money between yourselves.
Take care.
Gosh.
Let me chime in, please.
Treespirit, any foreclosure on property that you own will affect you. The public record will appear on your credit report, and that's a negative that cannot be erased.
That's not to say that you'll be liable for making payment to the lender. By the same token, if the home goes into foreclosure, you can rest assured that no lender on this planet will share any largesse with you. Their expenses will undoubtedly outpace whatever sales price they might eventually get, anyway; but once a lender acquires a property, that's the end of the relationship with a borrower and/or an owner.
Let me chime in, please.
Treespirit, any foreclosure on property that you own will affect you. The public record will appear on your credit report, and that's a negative that cannot be erased.
That's not to say that you'll be liable for making payment to the lender. By the same token, if the home goes into foreclosure, you can rest assured that no lender on this planet will share any largesse with you. Their expenses will undoubtedly outpace whatever sales price they might eventually get, anyway; but once a lender acquires a property, that's the end of the relationship with a borrower and/or an owner.
Getting divorced. Ive owned the home for five years. My name is on the bank loan and the house deed. Two years ago I got married and added his name to the home. Now he is fighting me for the home. Do I need to worry about this. He has two homes of his own at this time that he purchased while the divorce is still going on. I have no idea why he even wants to fight me for this one.
Hi Dee,
As you have added your spouse's name to the property deed, he has equal rights to the property as you have. Thus, you won't be able to remove him from the property unless he signs a quitclaim deed. He will be able to claim his rights on that property as his name is added on the property deed.
As you have added your spouse's name to the property deed, he has equal rights to the property as you have. Thus, you won't be able to remove him from the property unless he signs a quitclaim deed. He will be able to claim his rights on that property as his name is added on the property deed.
Dee, in this case, your divorce lawyer may have sufficient expertise to assist you, though it's a tad doubtful. Check with that lawyer to find out, and if the case is "no," then go seek out a real estate attorney who can try to iron it out.
The first choice of the divorce lawyer might make sense if this is simply the sort of thing that you and he can negotiate during the course of settling all the other marital issues in your divorce proceedings.
The first choice of the divorce lawyer might make sense if this is simply the sort of thing that you and he can negotiate during the course of settling all the other marital issues in your divorce proceedings.