More details to this question:
I previously owned a condominium in Fort Myers jointly with my now ex-wife. We divorced in 2003 and as part of the divorce settlement I signed over the condo to her. The mortgage however was solely in my name and remains that way until now. I had agreed to a schedule of alimony payments and she agreed to maintain the mortgage payments. Everything went smoothly until I learned a month ago that my ex had not maintained her condo association fees and the management at Gulf Harbour had foreclosed on the property. The property was sold at auction in January his year. At the same time I learned that my ex had stopped paying on the mortgage since September of last year and that the bank has begun the process of foreclosure. I think you can see my predicament. I owe 130k on a property that I don't own. My ex has walked away. I need to understand my rights and options in this situation. Can
1 ANSWER
Personal Injury Attorney serving Fall River, MA
at
Botelho & Associates, LLC
Update Your Profile
I see this happen every day, a divorce decree or settlement in the divorce case has absolutely no bearing on a mortgage. If your name was on the mortgage and it was foreclosed, the factor your wife's name was on the deed has nothing to do with the situation. Now that foreclosure is on your record and your credit history has been affected. Furthermore if there is any deficiency from the foreclosure sale that did not cover all mortgage payments then you are still liable for those and the lender may come after you for them. Since the foreclosure is already occurred you pretty much have two options wait and see with the bank does or file for bankruptcy to wipe out the debt. Your answer really will come from what your financial situation is and how much the bank is can go after you for. It would've been better if you were to file bankruptcy prior to the foreclosure because at that point the IRS tax ramifications would not come into play, but as your wife allowed the foreclosure go through it really depends on how the banks and a proceed at this point.
I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options.
Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.
Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave. Unit 2 Fall River, MA 02723 Office: 888-269-0688 FAX: 877-475-8147
Answered on Apr 24th, 2014 at 2:03 PM