Buying a home with a foreclosure in tow

[Derakane]

What is the name of your state? Ohio
Had to declare bankrupcy 2.5 years ago, at that time the old house was not reaffirmed. Now I'm in a position to buy another house. Can the old bank come after me regarding any equity I have in the new house?

Also, I'm going into this new house witha fiance', I have the down payment and despite this sounding a little morbid, if things should fail between us in the future, is their any basic thoughts that person can go through to make sure that the down payment stay's with my family? Would this require a prenup? or can a less abrasive contract be issued regarding the purchase of the new house?
ThanksWhat is the name of your state?

[moburkes]

The bank can only exercise their rights against the original mortgage. They are no longer allowed to exercise their rights against YOU. When you sell the original house, it should be enough to satisfy the mortgage, right?

The down payment doesn't belong to your family. If you buy a property jointly, then the money will be used to buy that joint property, right? If you are having second thoughts, why are you purchasing the house together?

[seniorjudge]

Originally Posted by Derakane

What is the name of your state? Ohio
Had to declare bankrupcy 2.5 years ago, at that time the old house was not reaffirmed. Now I'm in a position to buy another house. Can the old bank come after me regarding any equity I have in the new house?

Also, I'm going into this new house witha fiance', I have the down payment and despite this sounding a little morbid, if things should fail between us in the future, is their any basic thoughts that person can go through to make sure that the down payment stay's with my family? Would this require a prenup? or can a less abrasive contract be issued regarding the purchase of the new house?
ThanksWhat is the name of your state?

Yes, if you want to make sure your future wife doesn't get anything, then she should hire a lawyer and you should hire a lawyer.

Then hash out a prenuptial agreement.

Remember that every year that passes after a prenup is signed means that a court will be less likely to uphold it.

[Derakane]

Old house has been assigned for a sherrif's sale. If there is a difficiency in what the house is sold for and what was owed by me, I'm still Ok right?

For the new house, the fiance and I are at odds regarding this. She has the credit I have the down payment, sounds good right?. well I don't actually have the downpayment personally, it would be a gift from a family member. The family member's issue is that they worked their butt off for that money and would like to see it used for the fiance and I but are "skeptic" regrading all, no matter how strong the relationship, that if it shoud fail they wnt the money to stay in the family and not be "given" 1/2 to someone else just because of a marriage.
I'm looking at this from the stand point, she has the credit I have access to a down payment, we BOTH make out on the mortgage and hopefully we live happily ever after, Should it fail, then whatever equity is in the house, we split , but the downpayment is taken out first?
AM I wrong here??

[seniorjudge]

...AM I wrong here?...

I do not know, but I do know that you had better have everything in writing because oral contracts about real estate are generally worthless.

[moburkes]

They can only exercise their rights against the house. They cannot come after YOU, period.

The other is something that only you can answer.

[LindaP777]

Originally Posted by Derakane

Old house has been assigned for a sherrif's sale. If there is a difficiency in what the house is sold for and what was owed by me, I'm still Ok right?

Hmmm . . . you had a bankruptcy and the house was foreclosed on as part of the bankruptcy? Or was the foreclosure a separate issue?

[moburkes]

Originally Posted by LindaP777

Hmmm . . . you had a bankruptcy and the house was foreclosed on as part of the bankruptcy? Or was the foreclosure a separate issue?

Since the BK was 2.5 years ago, the foreclosure probably resulted from nonpayment afterwards, especially since it is just NOW getting to the sheriff's sale.

[Derakane]

yes the foreclosure was part of the original bankrupcy. I think I'm pretty solid on that front, and maybe the second part is less of a legal question and more of a common sense issue. being close to 40 and putting up a sizeable downpayment (from a gift), why would a person (me, trying to get council) pony up that kind of money with no guarentee, especially when the other party is not putting up anything. hard lesson to learn but nothing is guaranteed in life or love. legally how do other people do this sort of thing.Surely I'm not the first to go through such a thing. Anyone out there with experience or plain common sense. How is this a bad deal for all parties involved if I ask that what i brought into the marriage is the first to be taken out, first in , first out, down payment in, down payment out. Does this not happen all the time, or am I a money mongar??

[moburkes]

No two people go into a marriage 100% equal. Period. Therefore one person is always going into the marriage with "more to lose". You can attempt to protect your interests with a prenup, which was already suggested. No one else can tell you what to do.

Her credit is giving you the benefit of lower payments and interest. How will you compensate her for that if the time comes fo you to part?

She can get a loan with a good interest rate based on her good credit. Even with your sizeable down payment, your interest rate will be higher based on your poor credit.

[Derakane]

thank you for all your help

[moburkes]

Originally Posted by Derakane

Moburkes,
i appreciate all your comments and I hear what you are saying, what does she get out of this with her good credit. A low interest rate , the same as me, what 1-2% difference. And if the house value after 5 years is 270 and the mortgage is 160, does her interest rate equate to half the total equity, guess it depends on how long the payment are made, lets say you take out the dp of 80, she would be intitled to 1/2, I'll even be generous and (becasue of the low interest rate give her 60% of the equity in the house.) She possibly can come into the house with nothing and leave after 5 years with 60% of 30 =18 and i walk with my 80 + 40% of 30= 12 total of 92. Splitting hairs?? is this not fair??

That was waaay to detailed for me. I've answered as best as I could, except to say that 1-2% difference can be HUGE in both total interest AND monthly payments. Use a mortgage calculator to figure the difference.

You need to contact a local attorney.