QUESTION
Can this foreclosure be used against me by the lender?
Asked on Jan 21st, 2013 on Foreclosures - California
More details to this question:
My ex is solely responsible for our mortgage on the family home. I am however on the deed of trust. The divorce decree states that he assumes all debt on the house upon its sell if it does not pay off the loan. I have been tipped off that he plans to file bankruptcy to get out of his loan. I have moved on and purchased my own home apart from him. Can this foreclosure be used against me by the lender? Will this affect my credit? Can I sign a quit claim deed as I have no interest any further in the house as a protection? I am afraid I will be sued by the lender even though I am not on the loan!
5 ANSWERS
Civil Litigation Attorney serving Federal Way, WA
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Stasch Law LLC
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If the mortgage is on a home a non-judicial foreclosure will satisfy the loan. After sale, the lender will have no recourse against you or your ex personally if there is a deficiency. However, it may affect your credit. It would be a good precaution to file a Quit Claim Deed.
Answered on Jan 22nd, 2013 at 3:13 PM
Richard hirsh
Your information is not quite clear. If you signed the mortgage note you are still probably liable to the lender and bankruptcy by the ex will not discharge your obligation to the lender. Depending on the terms of your divorce decree, his bankruptcy may also not discharge his liability to you on that note. but if you never signed the note (only the mortgage) you would have no obligation to the lender.
Answered on Jan 22nd, 2013 at 3:12 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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First - this all turns on the state where the property is located and where you live. Second - since you have been through a divorce you should talk to your attorney to determine what, if anything, you should do as related to the divorce. Third - unless you divorce attorney is experienced in real estate - you should talk to a good real estate attorney. My best to you.
Answered on Jan 22nd, 2013 at 3:12 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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This should not affect your credit. Ownership of the land and being on the deed of trust do not affect credit. Only being on the loan and signing the promissory note would subject you to credit reporting or potential lawsuits. His bankruptcy might affect you, if you have joint debts.
Answered on Jan 22nd, 2013 at 3:12 PM
Your message is contradictory. On one hand, you say that your ex is responsible for the mortgage, but then you say that you are on the trust deed. It sounds like the divorce papers made your ex responsible, but left you on the paperwork. If that is the case, then a foreclosure will certainly affect your credit. It won't help your ex to file bankruptcy, either. The bank will have its way. If he has the money, you need to go to court to force him to make the payments. If he's broke, you're in a fix.
Answered on Jan 22nd, 2013 at 3:10 PM