1099C Discharge of Debt question

[BeckBoo]

What is the name of your state (only U.S. law)? GA
In 2007, my divorce was finalized with the ex. According to the agreement, he had one year to refi the house we had together and get my name off of it (once that was done, I was to get a quit claim on the deed). He never did and it foreclosed in 2011. I received a 1099C discharge of debt. I did take my taxes to H&R Block and it didn't effect my them (total discharge).

The question I have is: is it too late to try and rectify to get this out of my name? Also, do I have any legal recourse to go back on my ex for violating a court order?

Thank you!

 

[stealth2]

Since it didn't cause you any harm, what are you trying to accomplish? Besides sticking it to him, that is...

 

[nextwife]

What is the name of your state (only U.S. law)? GA
In 2007, my divorce was finalized with the ex. According to the agreement, he had one year to refi the house we had together and get my name off of it (once that was done, I was to get a quit claim on the deed). He never did and it foreclosed in 2011. I received a 1099C discharge of debt. I did take my taxes to H&R Block and it didn't effect my them (total discharge).

The question I have is: is it too late to try and rectify to get this out of my name? Also, do I have any legal recourse to go back on my ex for violating a court order?

Thank you!

Just curious: What was the loan balance and what was the actual true market value? Expecting a refi, for example, on an underwater house, or one with no equity, is not realistic. A lender is a third party, and not likely to agree to do a loan in such a scenario.

I keep seeing divorce decrees that require something un-doable by a third party in order to comply, and it makes no sense. Of course we don't KNOW the LTV ratio numbers, but the court order may have been impossible to comply with - at least I see a whole lot of such "You MUST short sell the house by X date (remember: a short sale is something the lender(s) must agree to and not something the seller has the final say on). Or "you MUST refinance" even though the loan is upside down and no lender will take on such a refi. Can't tell you how many times someone has told me the bank I work MUST accept their short sale, because they will be in contempt if WE don't!.

 

[BeckBoo]

I just don't want to be held responsible for this debt is all, actually we are still friends. I don't want to "stick it to him".

At the time of the divorce and when I moved out, the house was NOT in arrears. He just let it go wihtin a year of the divorce.

According to the 1099C, loan value was 78K, fair market value was 40K.

Within 5-7 years, I would like to find a house to buy. Right now I am renting to build my credit back up after the divorce. That is why I don't want to be held responsible for this debt!

 

[nextwife]

According to the 1099C, loan value was 78K, fair market value was 40K.

If so, how on this green earth, was it expected that he could refinance this loan? The decree language was yet another one that was impossible to comply with.

 

[nextwife]

I just don't want to be held responsible for this debt is all, actually we are still friends. I don't want to "stick it to him".

At the time of the divorce and when I moved out, the house was NOT in arrears. He just let it go wihtin a year of the divorce.

According to the 1099C, loan value was 78K, fair market value was 40K.

Within 5-7 years, I would like to find a house to buy. Right now I am renting to build my credit back up after the divorce. That is why I don't want to be held responsible for this debt!

The loan was granted by the lender based upon BOTH of you agreeing to pay this lender back IN FULL. Your agreements with your ex don't remove your equal responsibility to the party that you asked to give you this loan. You could have made sure YOUR mortgage was being paid.

Don't want to be held responsible? Pay back the mortgage that you were all agreeable about when you wanted the loan. Your lender is not a party to your divorce.

 

[BeckBoo]

The wording was very specific, and at that time he HAD the resources financially to refi. He just didn't want to live there anymore, so I could really get over on him, but I chose the high road. I just don't want the debt of a house that is not SUPPOSED to be in my name to effect me. Plain and simple.

 

[BeckBoo]

I could not afford to keep the house when we split, he made double what I earned at that time. He could have easily kept the house..but didn't. So now I am made to look like a bad person?

If you want to get to the nitty gritty of my situation, he was a bad drunk and I couldn't live with it another day! Not that has anything to do with this situation, but there you are!

 

[nextwife]

I could not afford to keep the house when we split, he made double what I earned at that time. He could have easily kept the house..but didn't. So now I am made to look like a bad person?

If you want to get to the nitty gritty of my situation, he was a bad drunk and I couldn't live with it another day! Not that has anything to do with this situation, but there you are!

Then you should have required it be sold and the loan paid off at the time. Relying on a person you yourself characterize as a bad drunk to responsibly manage a JOINT debt obligation was just as irresponsible.

Did YOU ever follow up to try to arrange a Deed in Lieu? A short sale? To get him kicked out and take possession and rent (all actions I have seen other, more proactive coborrowers do as soon as the ex defaulted)? What did YOU do regarding YOUR comortgage to make certain your lender was either being paid or the home sold or deeded back to the bank?

 

[ecmst12]

If the debt was discharged, then no one is responsible for it. It will be on your credit but only time can take care of that.

 

[BeckBoo]

Then you should have required it be sold and the loan paid off at the time. Relying on a person you yourself characterize as a bad drunk to responsibly manage a JOINT debt obligation was just as irresponsible.

Did YOU ever follow up to try to arrange a Deed in Lieu? A short sale? To get him kicked out and take possession and rent (all actions I have seen other, more proactive coborrowers do as soon as the ex defaulted)? What did YOU do regarding YOUR comortgage to make certain your lender was either being paid or the home sold or deeded back to the bank?

All I wanted was out of a bad marriage, at the time I was more concerned with my safety and well being than worry about the house and a mortage I couldn't afford! I didn't want the house PERIOD.

 

[Antigone*]

All I wanted was out of a bad marriage, at the time I was more concerned with my safety and well being than worry about the house and a mortage I couldn't afford! I didn't want the house PERIOD.

And now you have what you want. No house, no debt.