divorced 16 yrs. now suing for house

[okiebev]

undefinedWhat is the name of your state?Ok My co-worker was divorced in 1988 and the divorce papers state that the house, all lots and all indebtedness went to the husband. It was an FmHA loan. She has been remarried for 12 years and FmHA is now suing her for payment of $52,000 on the house. Can she be liable for this and what kind of lawyer should she get to fight it? Thanks for any help.

 

[stealth2]

What many people don't seem to understand is that a divorce decree doesn't automatically absolve a party of any and all financial obligations that are jointly held. Your friend and her husband signed a contract for a loan on this house. The lender is NOT bound by the family court order. Her name is still on the loan? Then she is equally responsible as he is - although she CAN take him back to family court to be found in contempt or sue him for whatever money she has to pay to make good on the loan.

 

[LdiJ]

What many people don't seem to understand is that a divorce decree doesn't automatically absolve a party of any and all financial obligations that are jointly held. Your friend and her husband signed a contract for a loan on this house. The lender is NOT bound by the family court order. Her name is still on the loan? Then she is equally responsible as he is - although she CAN take him back to family court to be found in contempt or sue him for whatever money she has to pay to make good on the loan.

While you are 100% correct about that something has to be "off" about this case. The divorce was 16 years ago. Even with a 30 year mortgage and even if the house was purchased fairly soon before the divorce, the house had to have gained a great deal of equity...and appreciation, during that time.

Therefore, there should be no reason why, even in a bankruptcy, the house shouldn't have sold for well above any amount remaining on the primary mortgage.....the only mortgage that she could be held responsible to pay.

Therefore I would definitely recommend an attorney to investigate exactly what happened here. There may be some type of fraud or malfeasance going on. 16 years ago interest rates for home mortgages were in the 10-11% range. Its unfathomable that someone with a mortgage from that period wouldn't have refinanced, maybe multiple times in the last 10 years....if the home was refinanced, then how would she still be on the mortgage?

See where my mind is going on this?

 

[nextwife]

I agree. No way there should be a difficiency that large so many years later. Unless ex deliberately trashed the place prior to vacating, which I've seen happen. I've seen FC properties stripped to the studs, with literally all bath fixtures and cabinets yanked out.

Anyway, she should have a title company there prepare an report, abstracting the title record from divorce forward. And obtain document copies. It would be interesting to know what the sheriff's sale fetched and to verify the foreclosure even occured.

 

[BelizeBreeze]

This is what happens when a 'FRIEND' posts a limited number of facts regarding a legal situation for which they have no knowledge.

I smell a bankrupty somewhere in this scenario

 

[LdiJ]

This is what happens when a 'FRIEND' posts a limited number of facts regarding a legal situation for which they have no knowledge.

I smell a bankrupty somewhere in this scenario

I agree that there is probably a bankruptcy involved, but I still question how it is possible that after 16 years there would be a difficiency on the primary mortgage.

FmHA loans are for farm properties/rural areas. The OP mentioned house and lots so its possible that it could have been one mortgage that covered the house and some adjacent, undeveloped property.

I have been crunching numbers and I still don't see it being possible for that much of a difficiency to exist after at least 17 years (allowing for them owning the property one year before the divorce, it could have been much longer)...even if the place was trashed. I am basing this on estimated purchase price in rural OK, 17 years ago even with serious acreage.

I hope the OP comes back and gives us a whole lot more info. However I still feel strongly that a serious investigation is needed. I honestly see the possibility that some serious malfeasance/fraud could have been involved here. I would also be asking FmHA to produce copies ALL of the documents she allegedly signed regarding loans on this property.

 

[okiebev]

Thank you so much for the replys. I just got off the phone with her. The ex-husband and her built the house new, were in it 3 years before divorce. She left and he never made another payment. She's afraid to see how trashed it is and house is in a TINY town of 75 people so resale not good! Ten years ago FmHA told her she was responsible, she called the office and they found the papers where he was awarded the house and all debts and told her at that time she was not liable. She was so relieved to hear that and she never thought about it again. Now FmHA won't even talk to her about it, said they'll see her in court. Can they go on her present husband's credit and income, or can she file bankruptcy on her own and not ruin her present husband's credit? What kind of lawyer is needed? Thank you so much for all the comments. They are greatly appreciated!

 

[LdiJ]

Thank you so much for the replys. I just got off the phone with her. The ex-husband and her built the house new, were in it 3 years before divorce. She left and he never made another payment. She's afraid to see how trashed it is and house is in a TINY town of 75 people so resale not good! Ten years ago FmHA told her she was responsible, she called the office and they found the papers where he was awarded the house and all debts and told her at that time she was not liable. She was so relieved to hear that and she never thought about it again. Now FmHA won't even talk to her about it, said they'll see her in court. Can they go on her present husband's credit and income, or can she file bankruptcy on her own and not ruin her present husband's credit? What kind of lawyer is needed? Thank you so much for all the comments. They are greatly appreciated!

Ok, then I suspect that what has happened is that they got a judgement against her ex and have been trying to collect from him all this time. He has probably finally filed bankruptcy so they are now officially unable to collect from him, so they are going after her.

She definitely needs to get an attorney as soon as possible. The statute of limitations for them to sue her may have passed by now. That may solve the entire problem. Please advise her to spend the money to hire an attorney and do it quickly. She doesn't want them to get a default judgement because she didn't handle things properly.