QUESTION
Can a bank take away my paid off home when trying to collect on my ex husbands foreclosure properties?
Asked on Dec 11th, 2012 on Bankruptcy - Minnesota
More details to this question:
He is filing for bankruptcy and letting 2 houses go into foreclosure that I no longer own, but name is still on mortgages. Can they take my paid off home away from me? I have no debts, and a good job.
8 ANSWERS
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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There are too few facts to give you an intelligent response.
Answered on Jun 12th, 2013 at 12:58 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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If your name is still on the mortgages of the houses which are being foreclosed you are potentially liable for the deficiencies resulting. Thereafter, the mortgage note holder will have creditor's rights which could, in the long run, force you to sell your home in order to pay the debt.
Answered on Dec 14th, 2012 at 2:19 AM
Is the house in joint names? If the creditor obtained a judgment against your ex spouse before he filed for bankruptcy, the creditor can place a lien on your house and although the creditor cannot take your house unless the equity is over $550K, the lien will affect your ability to sell or refinance the property until it is paid. Often these kinds of liens can be successfully settled for far less than the amount. It would be worth consulting a local real estate attorney and paying a consultation fee for more complete review of the facts, which make all of the difference.
Answered on Dec 14th, 2012 at 1:55 AM
If your name is still on the mortgages, then you do still have debts. You are also responsible for the mortgages. If he was made responsible for the mortgages in your divorce, then after the bank collects from you, you can (theoretically, at least) collect from him. If your home is paid off and not collateral for the mortgages, then the bank cannot take it. It can (and will) take you to court, get a judgment and then garnish your wages and tax refunds. If your "paid off" home is collateral for any of those mortgages, the bank will take it. Not good news, but I hope it clarifies things for you.
Answered on Dec 14th, 2012 at 1:34 AM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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You should consult with an attorney to confirm. You should not lose your home but your question was unclear as to your relationship with the foreclosed homes. Get a consult quickly.
Answered on Dec 13th, 2012 at 1:22 PM
Richard hirsh
Under the Illinois Mortgage Foreclosure Law the mortgage bank could eventually get a judgment against you personally if you were a signer or guarantor on the mortgage notes. That assumes the property values do not satisfy the indebtedness and there is a deficiency judgment. They could then proceed to attempt to recover that judgment against you personally. The judgment creditor could possibly obtain a judgment lien on your home that is paid off. Eventually they could even foreclose on that lien just like a mortgage. Did your divorce require him to satisfy those loans? In that case he might not be able to get out of his obligation to you even if he files bankruptcy.
Answered on Dec 13th, 2012 at 1:19 PM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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If the foreclosure properties are in Minnesota, it is possible for the mortgage company to obtain a judgment against you for the loans that you are still liable for. If there is anything left owing after foreclosure, they could pursue you for the funds. However, they can't take your home unless it is worth more than $390,000.00 or your equity in it is more than $390,000.00. You probably don't need to think about filing bankruptcy unless they sue you.
Answered on Dec 13th, 2012 at 1:18 PM
Some additional facts are needed fully to evaluate your question. My first impulse is to say yes, it is unlikely, but they could try to collect from you. Because of some special provisions of the Bankruptcy Code, your husband might still be liable to you, even after bankruptcy, for anything your husband's creditor manages to collect from you.
Answered on Dec 13th, 2012 at 1:18 PM