Divorce + Foreclosure
Question: I am going to come into a rather substantial windfall (several hundred thousand dollars), in approximately 30-60 days. Unrelatedly, I decided to file for divorce from my husband in early May. Long story. Back to the question. The 1st mortgage was for $96,000.00. He refinanced in 2003, he currently owes $91,000.00 on 2nd mortgage. He elected NOT to include my name on either mortgages or the Title/Deed. A disabled part-time student, I live in the home with our young child, and husband was ordered to pay the mortgage. He refuses, citing financial difficulty (lie) and now threatens me with: Foreclosure. Recently, he phoned me to "discuss the Foreclosure situation" and requested I meet with him so that I might "sign- on" to the mortgage. I refused. He has not made a mortgage payment since February of 2004. What if anything can/should I do to stop the Foreclosure?
[ Edited by medclub2004 on Date 05/15/2004 ][ Edited by medclub2004 on Date 05/15/2004 ]
You could get a mortgage in your name.
I personaly would not sign on to his mortgage.
As for making him pay, seek paid legal advice.
You stated: "I personally would not sign onto his mortgage". Sounds like good- and common sense- advice. Would you mind stating: "Why"? Thanks for the reply!
Because the foreclosure would be noted in your credit report as well (Along with the history of non-payment)?
-Chris
[addsig]
You just received some good information. You DO NOT want to sign on the loan(s) with him at this stage of the game, unless you particularly like late pays and a possible foreclosure on your credit report. (I am not an attorney, and this is not legal advise) You do need some legal guidance in my opinion. Is your state a community property state? With your coming into some big gucks soon, you might want to buy it, and if you want you can refi it. Also if he goes into foreclosure, perhaps you can short sale the loan(s) for an even better deal for you.
Good luck to you!
Ozzie
OK. I've read some good replies here. Any other suggestions on possible strategies? I would like to keep the house. That being said, should I contact the same mortgage company now? Or locate a totally new one, unrelated to current situation. Also, as divorce is not amicable, should I even mention to stbx the possibility of my buying it from foreclosure? Is there any other tactic I might pursue to buy it our from under him, as it were? Thanks, all!
A new lender would be preferred. I'd never ever never let him know you are intrested in buying the house from foreclosure do it on the QT With his knowing it'll make it a challenge for him to prevent your doing so probably. I am not an advocate of telling my opponent my war plans.
Try to buy the current loan(s @ discount, then you foreclose on him... that'll make you feel good I am sure.
But first know where and how you stand legally! Protect yourself.
Good luck,
I just noticed I did not get my full post included. I am not an attorney, and I am giving my opinion rather than legal advise.[ Edited by ozzie on Date 05/17/2004 ]
Thanks all, for the opinions. Taken!
Thanks all, for the opinions. Taken!
Here is the problem, how are you going to buy it out of foreclosure without telling him? This is impossible.. YOu could buy it at the auction or afterwards when it is an REO property but not prior without disclosing to him because 1. he is on title (has the deed in his name) and it is his until the sale. 2. The lender will not speak with you unless you have an authorization from him (the possible exception is that you might say I am his wife and they "may" talk to you even though your not on title or the deed etc.
I have been through a bad divorce and the best thing you can do is get a good lawyer, a barracuda should do nicely. You can be nice later...
[addsig]
Greetings medclub2004,
I’m sorry to hear you’re going through such a messy divorce. Been there, done that -- no fun. But as Stockpro99 pointed out, this is definitely one for your attorney.
You said he’s been "ordered" to pay and refuses, so I’m guessing that’s a court order. If so, and he’s in violation, I would think you may at least have grounds for a judgement and lien against him and/or the property. And if you could get a junior lien holder position, it could give you some added leverage.
Another thought would be to try to have the property awarded to you by the court. Even if he has an equitable interest (being community property), if you can get control, you obviously would have a lot more options. But again, this is where you really need a good attorney’s advise.
Good luck!
As your name is not on the paper I agree that you dont touch any of it. However in community property states it may still be (in a case of divorce, death, or civil action) a financial liability. Not on your credit report, but he may still be able to hit you for half of the loss. SEEK PAID LEGAL ADVICE. As to the income you are recieving protect yourself by putting it immediately into a trust. His lawyer may be able to strip you naked, but if that $ is in a trust he cannot so much as get a sniff of it.
That being said the same trust could come in and buy the house on a short sale and again he wouldn't know who bought it because the benifactor of a trust never has to be recorded. Of course if he drives by and sees yor car in the driveway.... :-D
Oooooohhhhhh! Now you are: dead-on point with the Trust suggestion. I'm on it!
(researching, that is). Thanks, pal!
Ok,
Now that we've heard your side, can we hear his and perhaps give him some advice?
Not if I can help it, chums!
Definitely seek legal advice! Depending on the laws in your state, if you choose to enfore the Court Order (that he make the mortgage payments) the judge may decide to toss him in jail for Contempt of Court until he complies with the Court Order. It's been my observation that they come up with the money pretty quick that way.
A good way to find an attorney is to contact a local or state sponsored Lawyer Referral Service. In North Carolina, the service sets an appointment for you with an attorney who has expertise in the area you need and the fee is $30 for a 30 minute consultation. It's a great way to interview lawyers to find the one who can best help you as everyone has unique circumstances. It's also a great way to discover if your best choice is to enforce the Court Order, defend the foreclosure action, or both.
"1st mortgage was for $96,000.00. He refinanced in 2003, he currently owes $91,000.00 on 2nd mortgage."
I'm a little confused ....
What is the value of your house?
What is the amount of the 1st?
What is the valus of the 2nd?
What is the value of the back payments?
With this info we can make an educated evaluation as to possible remidies.