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Home mortgage in chapter 7. I am NOT on mortgage. Appraisal fell short. Ex filed ch 7.
Anonymous10 views5 answers
In my divorce, the order reads that I am to refinance my home into my name, with reasonable efforts. My name was never on the mortgage, as I was in school at the time of the home purchase. My ex filed chapter 7. I attempted to get approval for a refi, however the appraisal of the home did not come to enough to assume the mortgage. The mortgage holder would not answer any questions.I consulted and attorney and was advised to stop making payments and walk away from the home. I then pre qualified for my own FHA loan and signed a contract on a new home. Now the lender with previous mortgage is stating they will work with me although my home will not appraise for enough. Am I liable for the mortgage or should I continue to let the home go and proceed with my new purchase.
A mortgage has two parts - the personal obligation to pay, and the obligation of the property to pay. You never had a personal obligation to pay because you never signed the mortgage paperwork. Your ex no longer has the personal obligation to pay either because this obligation was eliminated through his bankruptcy discharge.
So if you are willing to surrender the property, you have no responsibility for the mortgage. Your ex may be impacted by a foreclosure and I would suggest putting aside any past differences to ask if he would like to have the property back or attempt a short sale if you no longer wish to keep the property. Otherwise, what you do is completely up to you. Hope this perspective helps!
You are not liable for the mortgage on your old home. Just because the mortgage company now says they will work with you does not impose any liability on you to the mortgage company. Your ex could have a claim against you if s/he suffers any adverse affects due to your failing to comply with the court order, but those negative affects should be limited by their bk filing.
You could also suffer significant negative consequences if you do not go through with the purchase of the new home unless your failure to do so fits within one or more of the grounds for walking away from that contract that are built into most offers to purchase.
This is complicated and I would want to see a number of documents, to include your Separation Agreement. If I were you, I would take your hard-earned money and get a fresh start. Given the home is not in your name, I am not so sure you have any liability for the home! I mean, who could "come after" you?
Good luck!
The home does not appraise for how much the old mortgage is for? Then tell the bank you'll only buy it for less than that. And it is worth nothing to you if it has no equity.
it appears someone may not have completely forthright in debts owed by the parties. I would contest liability to any instrument for real property debt I did not execute. I would review the language of the property settlement agreement. Did your ex list a property interest in her bankruptcy schedules,. Did she include you as a co-owner of the house. You may have only been on the deed and deed of trust. You appear from your description of the events absent any special circumstances, agreements or other documents to let it go and proceed with the new purchase. Read everything carefully especially your divorce property settlement agreement for hold harmless clauses..
