sjnelson777
Junior Member
What is the name of your state (only U.S. law)? NC
My husband and I have been living apart almost a year and are filing for divorce soon. He remains in our home. We declared bankruptcy and were discharged almost 2 years ago. We exempted the house in the bankruptcy but chose to voluntarily continue making payments in order to remain in the home. Both the mortgage & home equity loans are in my name, however both our names are on the deed. As he has always paid both the mortgage & home equity, he wants to keep the home. I want to try and sell & split the profits (if any) or make him refinance to buy out my portion of the equity but to also get my name off the existing loans. His arguments are that there’s no need to re-finance since 1) there is no longer any financially responsibility on my end to fulfill the loan obligation & we’re voluntarily paying for the loans 2) the loans are no longer being reported on my credit report, and 3) if needed, and he could walk away from the home because of the bankruptcy without any penalty to me should he no longer be able to afford the payments. I confirmed with our bankruptcy lawyer and was assured that if he couldn’t afford the payments and had to forfeit the home, the banks STILL couldn’t come after me for payments or hold me liable for money owed (should the bank sell for less than what is owed on the existing loan) and that it wouldn’t be reported on my credit report because of the bankruptcy should they have to foreclose on the home. I’m still uncomfortable with this and would rather have my name wiped off completely by selling/refinancing. He doesn’t want to refinance for several reasons – 1) he’s self-employed and may have difficulty getting a loan in his name 2) would most likely receive a higher loan interest rate, and 3) why be financially responsible for a new loan in his name since the way it’s currently structured in my name benefits him, and if there truly is no financial pitfall for me because of the bankruptcy, why change anything?. So, my question is, should I find there is no profit to be made by selling or refinancing, how would you suggest our divorce papers be structured to protect my financial interests? Do you see any financial pitfalls on my end with the information I provided if what I’ve been told is true?
Thank you,What is the name of your state (only U.S. law)?
My husband and I have been living apart almost a year and are filing for divorce soon. He remains in our home. We declared bankruptcy and were discharged almost 2 years ago. We exempted the house in the bankruptcy but chose to voluntarily continue making payments in order to remain in the home. Both the mortgage & home equity loans are in my name, however both our names are on the deed. As he has always paid both the mortgage & home equity, he wants to keep the home. I want to try and sell & split the profits (if any) or make him refinance to buy out my portion of the equity but to also get my name off the existing loans. His arguments are that there’s no need to re-finance since 1) there is no longer any financially responsibility on my end to fulfill the loan obligation & we’re voluntarily paying for the loans 2) the loans are no longer being reported on my credit report, and 3) if needed, and he could walk away from the home because of the bankruptcy without any penalty to me should he no longer be able to afford the payments. I confirmed with our bankruptcy lawyer and was assured that if he couldn’t afford the payments and had to forfeit the home, the banks STILL couldn’t come after me for payments or hold me liable for money owed (should the bank sell for less than what is owed on the existing loan) and that it wouldn’t be reported on my credit report because of the bankruptcy should they have to foreclose on the home. I’m still uncomfortable with this and would rather have my name wiped off completely by selling/refinancing. He doesn’t want to refinance for several reasons – 1) he’s self-employed and may have difficulty getting a loan in his name 2) would most likely receive a higher loan interest rate, and 3) why be financially responsible for a new loan in his name since the way it’s currently structured in my name benefits him, and if there truly is no financial pitfall for me because of the bankruptcy, why change anything?. So, my question is, should I find there is no profit to be made by selling or refinancing, how would you suggest our divorce papers be structured to protect my financial interests? Do you see any financial pitfalls on my end with the information I provided if what I’ve been told is true?
Thank you,What is the name of your state (only U.S. law)?