In Dire need of Advice

[RCiancia]

What is the name of your state? Florida

My Ex and I were divorced in Sept 2003. There are 2 kids, 15 & 13. I recieve Child Support and lifetime alimony as I am disabled. As part of the settlement, he signed the house over to me on a Quit Claim Deed. The mortgage is in his name only. He was supposed to transfer it to my name, but never did. I have bad credit and do not work, as I a on disability. I've just learned that he filed Chapter 7, and included the mortgage as part of his case. Now I am told, that i will lose my house, as he defaulted the mortgage. He told me I have to get my own mortgage, but I have no income and bad credit. Can he legally do this to me and get me and my kids thrown in the street? I cannot afford a lawyer to look into this problem, so I desperately need your advice. Any help is really appreciated. - Thanks

[Gracie3787]

Originally Posted by RCiancia

What is the name of your state? Florida

My Ex and I were divorced in Sept 2003. There are 2 kids, 15 & 13. I recieve Child Support and lifetime alimony as I am disabled. As part of the settlement, he signed the house over to me on a Quit Claim Deed. The mortgage is in his name only. He was supposed to transfer it to my name, but never did. I have bad credit and do not work, as I a on disability. I've just learned that he filed Chapter 7, and included the mortgage as part of his case. Now I am told, that i will lose my house, as he defaulted the mortgage. He told me I have to get my own mortgage, but I have no income and bad credit. Can he legally do this to me and get me and my kids thrown in the street? I cannot afford a lawyer to look into this problem, so I desperately need your advice. Any help is really appreciated. - Thanks

Was it specified in the divorce decree that he was to transfer mortgage into your name?

IF it is, then you can do 2 things:
1. File an objection along with a copy of divorce decree with the BK court. At the very least it will delay the BK until everything gets straightened out.
2. File a motion for contempt for his refusal to obey agreement/court order.

HOWEVER, IF it wasn't specified in divorce, you may have a problem.
I would suggest that you file an objection with BK court anyway.
And check with your Legal Aid office.

The one thing working in your favor is that until the BK is final, the mortgage co. cannot foreclose.
Good luck.

[RCiancia]

Regarding the divorce decree, it says "he was to notify the mortgage company of the deed change" , which he never did. I also found out that his discharge may be this Friday.. I hope its not too late

also..

Iam on the mortgage technically somehow as other banks bought it over the years... my name was not put on it as it was refinanced, but its an assumable and i was on first mortgage

[Nick P]

You can always sue him.

[SeattlMike]

Who was responsible for the mortgage being paid, in the decree? If you are, then you are screwed. If he is, then you have things you can do-but all of them mean you lose the house if your disability and alimony aren't enough to qualify for a loan on the house. Go to a mortgage broker and explain your situation---and find a reputable one because a shifty one will see opportunity to fleece you.

First, you have to understand that the mortgage must be paid, period. Second, the banks don't care who pays it. Third, if your name is on the mortgage and the other party doesn't pay, regardless of the decree, the banks can and will foreclose. You will be able to sue for damages, but you will have to be damaged first. Not much of a prize when you have to pay an attorney to get blood from a rock.

Foreclosure is your likely scenario if you can't get a mortgage on your own and you can't sell it quickly.

However, there's another solution if you have equity inthe place and don't mind losing some of it. Sell it for less, but still enough to walk away with down payment on another place. You'll be surprised what kind of credit can still get financing; especially if you have a good-sized down payment.

Another option is to find a slimeball "swoop and steal" buyer. These are the guys who advertise inthe paper to "help" save your credit by signing the house over to them. They buy out your contract if there's equity in the house-but only if they can make a pretty penny on your misfortune ($10-15K minimum). Basically what happens is someone offers you an amount of money for your house that's way low, because you're going to foreclose with in days. This way, it's sold to them before you're foreclosed on-and you don't have a foreclosure. It's a slimey business, but it prevents final foreclosure. If your ex has racked up the loan/value ratios so that there's little equity left, nobody will buy the place and it goes into foreclosure. The key thing is that with credit, once it's reported as going INTO foreclosure, that's basically the same as if it happened as far as your credit report is concerned. There is NOT a further penalty for actually foreclosing; the damage was already done.

There is a bright side here, and it's that you have a court doc that shows that you're not responsible for the mortgage, right? When you apply for your next mortgage, you'll use that doc to show that the foreclosure happened because he let it go, and he was responsible. Don't think that your bad credit will preclude you from owning-call a mortgage broker and find out for sure. Just remember that lenders make money from making loans, and they make more money from loans to people with bad credit. It's all about risk, and if you can show and justify (truly and legitemately) your ratings, you'll get a loan, you just will not get the best rates out there....

The best thing to do is refi. The next best is to sell it before it goes to foreclosure. Everything after that is just "how bad are you screwed" scenarios.....