Posted on: 18th Apr, 2010 10:17 am
hi,
my ex wife and i were divorced several years ago and after the divorce she executed a quit claim deed transferring her interest in a property she had purchased solely in her name to me personally. at the time there was a mortgage balance. i have been managing the property as a rental property ever since and have been making the payments in a timely fashion. to my knowledge the mortgage company ‘ knows nothing of the transaction as the mortgage is still in my ex-wife’s name, i simply make the payments.
my ex wife (who is a really great person…fyi), is in the process of filing for bankruptcy. should she claim the mortgage on this house? what happens if i stop paying the mortgage on the house? how does the bank foreclose and who do they foreclose against? what happens to my equity stake in the house?
you may not hear this question every day….lol
thanks
my ex wife and i were divorced several years ago and after the divorce she executed a quit claim deed transferring her interest in a property she had purchased solely in her name to me personally. at the time there was a mortgage balance. i have been managing the property as a rental property ever since and have been making the payments in a timely fashion. to my knowledge the mortgage company ‘ knows nothing of the transaction as the mortgage is still in my ex-wife’s name, i simply make the payments.
my ex wife (who is a really great person…fyi), is in the process of filing for bankruptcy. should she claim the mortgage on this house? what happens if i stop paying the mortgage on the house? how does the bank foreclose and who do they foreclose against? what happens to my equity stake in the house?
you may not hear this question every day….lol
thanks
Welcome fordshelbygt,
As the mortgage is still in your wife's name, she will have to list it as her debt while she files bankruptcy. As the mortgage is still in her name, if you stop paying the debts, it won't affect your credit in any way. The bank will foreclose the property if they do not receive the payments. They will go after your ex-wife in order to recover the dues as she is listed as the mortgage borrower.
As the mortgage is still in your wife's name, she will have to list it as her debt while she files bankruptcy. As the mortgage is still in her name, if you stop paying the debts, it won't affect your credit in any way. The bank will foreclose the property if they do not receive the payments. They will go after your ex-wife in order to recover the dues as she is listed as the mortgage borrower.