I'm divorced, my ex kept the house, as on my divorce paper, he signed that he's responsible for the house. But now, the bank foreclosed on the house, are the gonna chase me for the money that he technically owed the bank. I understand that my name still being on the loan I am still held accountable for the unpaid portion of the mortgage.
What are my options? Will the bank be able to chase after me for the money, seize any assets I have i.e. cars, bank accounts etc...
I know I probably need to talk to an attorney but I really dont have the money to do so at the moment. Any recommendations on free legal advice would be appreciated as well.
Thanks a lot
Martina
Your situation is a common one, unfortunately.
You and your ex-spouse have a settlement agreement regarding the property, but that contract does not trump the contract you and your then-spouse signed to repay the loan. How the property is titled is irrelevant.
I know this is hindsight, but your settlement agreement should have had a provision that required your ex-spouse to refinance the property in a certain period of time, and if he failed to do so must sell the property.
The creditor has the right to seek payment from either or both you and your spouse. You did not mention the state the house is in. The state of residence of your ex-spouse will have an enormous impact on the creditor's ability to pursue you and your ex-spouse for the deficiency balance. In "non-recourse" states, the mortgage company may not collect any deficiency balance from the debtor(s) by law. In recourse states, mortgage companies can collect the deficiency balance legally. Some states like California have tricky recourse/no-recourse rules where some mortgages are recourse and others are not.
I urge you to consult with an attorney in your state who is experienced in property law, and bring all of the documents you may have relating to the purchase of the property and the loan to this meeting. The attorney will be able to advise you of your rights and liabilities according to your circumstances and your state law. You mentioned you do not have the money to pay an attorney to get advice. I would argue that this is a significant enough issue that you cannot afford NOT to spend an hour with an attorney to understand your rights.
This is an important issue, and you really do not want to accept as gospel any advice from someone who does not understand your complete circumstances. In other words, Yahoo Answers is not the right place for you to get a precise answer to your particular question.
I hope this information helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog
You don't have a "divorce attorney"? See legal aid for recommendations. If you bought the house together, and your name is still on deed of trust? They'll come after you for the house payments. You should have quit deeded the house as soon as you got the divorce to avoid this problem.
Is this property in a non recourse state?
If they decide to chase him, they are going to chase you as well.
Banks don't care about what your divorce decree states. In their eyes, you are both still on the loan and liable.