premarital debt related to mortgage

[engagedSC]

What is the name of your state (only U.S. law)? SC

Engaged to guy who, per family court, is responsible for mortgage that actually has his and his ex's name on loan. House has been for sale for over a year but hasn't sold due to current real estate market. His ex has since remarried and has another home loan. (unfairness of situation -- she had affair, stopped working part of the year so salary would be lower, etc.... which left him with larger salary per W2.) He is having great difficulty making payments on the home, has seen a credit counselor, and may have no option other than filing bankruptcy in the near future. Together, in my home, we will be good financially -- should he be able to get rid of the mortgage payment.

My question is this: will the mortgage company be able to hold me responsible for the mortgage should we marry before the house sells? What about his ex's responsibility/liability given the family court ruling?

Have read different opinions as to whether or not mortgage company can take my assets (as community property) to pay premarital debt.

[Ohiogal]

Originally Posted by engagedSC

What is the name of your state (only U.S. law)? SC

Engaged to guy who, per family court, is responsible for mortgage that actually has his and his ex's name on loan. House has been for sale for over a year but hasn't sold due to current real estate market. His ex has since remarried and has another home loan. (unfairness of situation -- she had affair, stopped working part of the year so salary would be lower, etc.... which left him with larger salary per W2.) He is having great difficulty making payments on the home, has seen a credit counselor, and may have no option other than filing bankruptcy in the near future. Together, in my home, we will be good financially -- should he be able to get rid of the mortgage payment.

My question is this: will the mortgage company be able to hold me responsible for the mortgage should we marry before the house sells? What about his ex's responsibility/liability given the family court ruling?

Have read different opinions as to whether or not mortgage company can take my assets (as community property) to pay premarital debt.

He declares bankruptcy and she can come after him FOR EVERY CENT associated with the house (motion to show cause in family court) and he will not get rid of that debt. The mortgage company will go after his ex wife regardless of what the court order states and she in turn will go after him and get a judgment against any property he EVER owns.

Don't count on ever owning property with him, sharing finances, tax returns or anything else or you will put yourself at risk. Don't believe that him depositing everything into an account with your name on it will protect you or him either -- the court can then pull you into it for participating in fraud by hiding his assets.

He has a court ORDER that he is responsible for the mortgage. Why don't you two move into his house and sell yours?

[LdiJ]

Originally Posted by Ohiogal

He declares bankruptcy and she can come after him FOR EVERY CENT associated with the house (motion to show cause in family court) and he will not get rid of that debt. The mortgage company will go after his ex wife regardless of what the court order states and she in turn will go after him and get a judgment against any property he EVER owns.

I agree with that.

Don't count on ever owning property with him, sharing finances, tax returns or anything else or you will put yourself at risk. Don't believe that him depositing everything into an account with your name on it will protect you or him either -- the court can then pull you into it for participating in fraud by hiding his assets

I disagree with much of that. If they keep finances separate her assets would not be at risk and in addition there would be absolutely NO risk in them filing joint tax returns.

He has a court ORDER that he is responsible for the mortgage. Why don't you two move into his house and sell yours?

I think that's about the worst advice I have ever heard you give on these forums. Why in the word would it be in her best interests to sell HER house to save his premarital credit? That's absurd advice.

[Ohiogal]

I agree with that.



I disagree with much of that. If they keep finances separate her assets would not be at risk and in addition there would be absolutely NO risk in them filing joint tax returns.

Wrong. If he is depositing HIS checks into HER account then they could trace his funds and go after her for engaging in hiding assets so that his ex could not get them.

I think that's about the worst advice I have ever heard you give on these forums. Why in the word would it be in her best interests to sell HER house to save his premarital credit? That's absurd advice.

Yeah and I think lots of things are absurd. That is an option that is open to her so that her love will not be called on the carpet. I never said she HAD to do that. I threw it out there for an option.
It is a possibility.

ETA: and since this is dad's legal situation, if dad were here posting I would be asking him why he wouldn't be having his lady love move in with him and thus avoiding the whole issue.

[engagedSC]

Ok, I understand that there is a ruling that he has the home. However, he NEVER asked for it -- but the judge essentially gave it to him in the first hearing (prelim or temporary) because he was granted custody of the kids and (presume) he wanted him to have permanent home for kids and with less change for them. (Ex had moved approx. 50 miles away to another town -- next door to her new boyfriend.) This may be a naive question but why can't he prove he and his attorney never asked for it? And why is he automatically responsible for it?

[Ohiogal]

Originally Posted by engagedSC

Ok, I understand that there is a ruling that he has the home. However, he NEVER asked for it -- but the judge essentially gave it to him in the first hearing (prelim or temporary) because he was granted custody of the kids and (presume) he wanted him to have permanent home for kids and with less change for them. (Ex had moved approx. 50 miles away to another town -- next door to her new boyfriend.) This may be a naive question but why can't he prove he and his attorney never asked for it? And why is he automatically responsible for it?

Because he had an opportunity back then to decide to sell it or to let her have it. He didn't bring that up to the judge and never appealed it and never made an issue until he met you and got engaged and now wants to forget about the COURT ORDER and do whatever he can to get into your home with you.

He is NOT automatically responsible -- he is responsible per the court order which he never appealed or objected to as allowed to by law. Now it is too late. So now he has to face the consequences which is his ex can sue him if he declares bankruptcy and sticks her with the house. And then he will be paying HER for the home that she has to pay for. Understood?

[engagedSC]

He did not change his mind after he met me. The first order from the judge said he would have home until sold. Again, due to fact he got custody. His attorney did try to get the ex to pay for part of it but she refused so the order was just continued from first paper. She had received an inheritance when her father passed away so she used part of the money as a down payment and got another mortgage in her name. Therefore, her attorney's argument was she was financially unable to pay the first mortgage due to her new mortgage. No one took into consideration that the husband did not make enough money to pay the mortgage alone and pay for everything else.

[LdiJ]

Originally Posted by engagedSC

He did not change his mind after he met me. The first order from the judge said he would have home until sold. Again, due to fact he got custody. His attorney did try to get the ex to pay for part of it but she refused so the order was just continued from first paper. She had received an inheritance when her father passed away so she used part of the money as a down payment and got another mortgage in her name. Therefore, her attorney's argument was she was financially unable to pay the first mortgage due to her new mortgage. No one took into consideration that the husband did not make enough money to pay the mortgage alone and pay for everything else.

Again...its too late to do anything about it now. If its taking that long to sell, then perhaps he needs to lower the asking price.

[engagedSC]

Order states he can not take less than $10,000 below market value -- even if he is will to cover the loss. Guess we need to now pose the question-- what is market value in comparison to appraisal?

There should be some sense of justice. She cheated, she left him and her two girls, she bought house even though she owed on one, etc. etc. Really not whining. Just hoping for some "out" or loophole cause bankruptcy will ruin him for more than just the usual few years.

Thanks for the info thus far.

[Golfball]

So, does the X get any of the proceeds when the house sells, or did the X quitclaim the house?

Minor derail:
If OP and her fiance get married, but fiance/hubby is not placed on the deed or the mortgage for the property, can a judgement against fiance/hubby be enforced against the marital dwelling (of OP and her SO)?

[engagedSC]

The X did not quitclaim the house. Only reason this point was not argued is because they (husband and attorney) knew they were not going to make a profit. 100% mortgage and had only been in home for 4 months when ex moved out. (btw -- 100% mortgage due to fact ex had gotten them in cc debt of about $75K so when they sold other home, they used proceeds to pay off debt.)
As for this question -- I would like to know answer as well. Currently her (ex's) new husband is not listed on the mortgage of her current home and, of course, not on the mortgage of the former home that is in question.
Minor derail:
If OP and her fiance get married, but fiance/hubby is not placed on the deed or the mortgage for the property, can a judgement against fiance/hubby be enforced against the marital dwelling (of OP and her SO)?

Since ex inherited acreage and home when father died a few months after she moved out, will mortgage company take that property -- which she is renting the house and leasing the pasture -- should the mortgage go sour or if my friend files for bankruptcy? Can they take her current home as well?

[Ohiogal]

Originally Posted by engagedSC

The X did not quitclaim the house. Only reason this point was not argued is because they (husband and attorney) knew they were not going to make a profit. 100% mortgage and had only been in home for 4 months when ex moved out. (btw -- 100% mortgage due to fact ex had gotten them in cc debt of about $75K so when they sold other home, they used proceeds to pay off debt.)
As for this question -- I would like to know answer as well. Currently her (ex's) new husband is not listed on the mortgage of her current home and, of course, not on the mortgage of the former home that is in question.
Minor derail:
If OP and her fiance get married, but fiance/hubby is not placed on the deed or the mortgage for the property, can a judgement against fiance/hubby be enforced against the marital dwelling (of OP and her SO)?

Since ex inherited acreage and home when father died a few months after she moved out, will mortgage company take that property -- which she is renting the house and leasing the pasture -- should the mortgage go sour or if my friend files for bankruptcy? Can they take her current home as well?

It is possible they could try to seize any assets owned by the two of them if the mortgage is not paid. Even if your dear beloved declares bankruptcy. Because in a bankruptcy, the bank will go after HER and if she doesn't pay they will get a judgment against her. And then she should sue your beloved for every dime he may ever get at any time.

As for her quitclaiming the house -- no way should she have given him a quitclaim deed when she remains on the mortgage.