love2jabber2002

[love2jabber]

What is the name of your state? IN

My husband divorced 3 years ago. He and his ex-wife refinanced their house before divorcing to help lower the payments so she could continue living there. He is the co-signer. She just told us that she has filed bankruptcy and she is currently 4 months behind in the mortgage. She is vacating the property this week. The courts ordered her at the divorce hearing to have sole custody of the house and the financial expenses of the house. My husband and I have no way to pay the mortgage and it would only appraise around 106,000 with the balance of 99,000. The house is getting ready to go to foreclosure. It needs repairs as she let it run down. My husband talked to an attorney about bankruptcy and he said that he did not need to file and advised him to let it go back and be sold and the PMI would pay for any loss the lender took and no one would come back on him. Is this true? If it is true and she did file bankruptcy , is she responsible for paying in back property taxes as she lived there and is she responsible for keeping insurance on it until it is sold? Does my husband need to sign the deed over or just let it foreclose. Any good advice would greatly be appreciated. We are trying not to let her ruin our life as she has set out to do. Thank you.

[seniorjudge]

Q: My husband talked to an attorney about bankruptcy and he said that he did not need to file and advised him to let it go back and be sold and the PMI would pay for any loss the lender took and no one would come back on him. Is this true?

A: Your husband is still liable for the promissory note until it is paid off.