My house is in bank foreclosure..I am working toward a loan modification but do not have an answer. The house is jointly owned with my ex-husband. The lien is against him. They cannot satisfy it through wage garnishment (no income but social security) or personal property so they now say they are going after real property (the house). We share the home for financial reasons but we each own 50%.
I certainly hope you have an attorney. Speaking in general terms, a creditor against a spouse cannot force a saleof real estate. You own the propety by what is know as tenancy by the entirety. Normally after a divorce the asset is sold and any profits distributed. If the house cannot be sold (mortgage higher than the value) then usually distribution is put off. Please do not take any legal advice from creditors. Only from a NJ attorney who will protect your interest. By the way does the property settlement agreement say that the ex is soley liable for his own debt? That can be used in court to stop the forced sale by the credit card company.
Does the property settlement agreement state percentage of ownership of the house?NJ is an equitable distribution state NOT a community property state which is always 50-50 division.
Please read in its entirety my statement on unfair debt collection. You might qualify and since there is a fee shifting rule in the act; your legal fees might be paid by the creditor.
The prior federal administration severely weakened most state’s laws against excessive interest. Unpaid debts now have practically no ceiling on interest which means the final bill can be much more than the original debt.
When you have received a collection notice, lawsuit or even a judgment on an old debt which may have already been paid, or belongs to someone else, or has been discharged in bankruptcy, keep the following in mind. After a creditor writes off your debt, it can then be sold to a collection agency. That agency may sell it again and the next one again. By the time the debt is assigned to a law firm, it can be years pass the statute of limitations, all of the original contracts have been lost and there may be no legal foundation for enforcing the debt. One way of knowing this is that the agency will have no discernible address or they will say they are collecting from a creditor, but the creditor does not know who they are. They will call you at work , and they will not listen to any explanation at all. They will refuse any suggested payment plan and demand a large sum at once. Often these collection agencies and even law firms will file a suit against you, misspell your name, or deliberately send it to the wrong address. You have no notice but they go to court anyway, get a default judgment against you when you do not come to court, and file a judgment lien on your assets such as a home you are trying to sell, or they report you to a credit bureau as a deadbeat. You are allowed to send a 100 word explanation in writing to the three credit bureaus (which they must print) as to why the debt is invalid. Also, many attorneys will take such a case on a contingency basis. A Violations of the fair debt collection act has a fee shifting rule (the creditor pays your attorney). Not only do you get the debt out of your life, you may get a financial award also. Be sure to write to your congress representative to have a stronger federal law to restore a ceiling on interest and to curtail these illegal collection practices.
You might find my legal guide on commercial litigation helpful.
You might find Gabriel Cheong’s legal guide on the do and don’t of finances after a divorce helpful.
You might find my legal guide on divorce in general and in NJ helpful.
(Much of this information is valid for unmarrieds who have children together).
LEGAL DISCLAIMER
Mr. Sarno is licensed to practice law in NJ and NY. His response here is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Sarno strongly advises the questioner to confer with an attorney in their own state to acquire more information about this issue.
