mortgage delima

[kathybeaty]

What is the name of your state? Georgia My problem has to do with a mortgage loan that my husband has co-signed on with his previous wife. She recently called to tell him that she could not keep up her payments and wants to sign the property over to him and have him pay the loan. The house is in Tennessee and we are in Georgia. My husband accessed the loan info using the information that has shown up on his credit report and found out that she is 90 days behind with a check for one payment she had sent the mortgage company that bounced (and she has not replaced). We cannot afford the $750.00 monthly payment nor do we want the property. My question is: What are our options? Would the mortgage company garnish my husband's wages for any balance left after a forclosure or would they garnish her's? Any advice in this delima would be greatly appreciated!

 

[hexeliebe]

Both since both are legally liable.

You need to answer a question first to determine if it's feesible to take ownership of the property.

First, is there any equity that you can get out of a sale?

If yes, then that is your option. Take title of the house and immediately sell it. If you get enough out of the equity to pay the note off, then the problem is solved.

However, if there is no equity in the house, both parties to the note are liable for any past-due payments and signing the house deed over to your husband does not relieve the ex of her financial responsibility.

 

[kathybeaty]

There is no equity accumulated. The house appraised for $90,000.00. The loan was for $89,000.00 with a balance of a little over $87,000.00. Because the loan was for more than 80% of the value PMI is added to the payments monthly. My husband's income is quite a bit more than her's, so would they want to get the balance after forclosure and auction of the house from him only because of his high income? Also, Washington Mutual has the mortgage loan and has not ever contacted my husband about the late payments at all. This came up in April and they were going to forclose in 7days at that time and now we have the same situation again and still no contact from the mortgage company. What do we make of that?

 

[HomeGuru]

There is no equity accumulated. The house appraised for $90,000.00. The loan was for $89,000.00 with a balance of a little over $87,000.00. Because the loan was for more than 80% of the value PMI is added to the payments monthly. My husband's income is quite a bit more than her's, so would they want to get the balance after forclosure and auction of the house from him only because of his high income? Also, Washington Mutual has the mortgage loan and has not ever contacted my husband about the late payments at all. This came up in April and they were going to forclose in 7days at that time and now we have the same situation again and still no contact from the mortgage company. What do we make of that?

**A: have your husband contact the lender and negotiate.