What is the name of your state (only U.S. law)? California
In 2005 I purchased a home with 100% financing (80/20). I got married in 2009. Starting in 2009 we started to file a joint tax return. I lost my job in 2010 and been unemployed for the past year, and been in default for the last year as well. I never put my wife on the mortgages or the title of the home.
I met with a financial counselor to discuss the options and determined that my wife being added would not had done anything related to a loan modification as she just doesn't make enough. A modification would only work if I was to find work.
In May 2011, I was facing a foreclosure date and I had requested approbal to conside a short sale, but never heard a response from the lenders so I was forced to rent one day before the foreclosure sale. I didn't want to be evicted, since that hurts the credit file even further (we wouldn't be able to rent). I later found out that the lender had extended the foreclosure auction. They are curretnly reviewing the short sale package.
Here's the questions:
1) The lenders are requesting tax returns, should I supply the returns? My concern here is the lenders are not currently aware I'm married and does this open my wife up to any risks?
2) Can the lenders pursue my wife at all?
3) Does us moving out into a rental impact the tax forgiveness?
Thank you for the help!
In 2005 I purchased a home with 100% financing (80/20). I got married in 2009. Starting in 2009 we started to file a joint tax return. I lost my job in 2010 and been unemployed for the past year, and been in default for the last year as well. I never put my wife on the mortgages or the title of the home.
I met with a financial counselor to discuss the options and determined that my wife being added would not had done anything related to a loan modification as she just doesn't make enough. A modification would only work if I was to find work.
In May 2011, I was facing a foreclosure date and I had requested approbal to conside a short sale, but never heard a response from the lenders so I was forced to rent one day before the foreclosure sale. I didn't want to be evicted, since that hurts the credit file even further (we wouldn't be able to rent). I later found out that the lender had extended the foreclosure auction. They are curretnly reviewing the short sale package.
Here's the questions:
1) The lenders are requesting tax returns, should I supply the returns? My concern here is the lenders are not currently aware I'm married and does this open my wife up to any risks?
2) Can the lenders pursue my wife at all?
3) Does us moving out into a rental impact the tax forgiveness?
Thank you for the help!
