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How much can I be hurt by his actions? Stopped paying mortgage, credit cards, Divorce states for him to refi to remove my name?

Woodbridge, NJ |

After lie after lie & trying to bail him out of a number of financial messes I gave up & filed for divorce. I never wanted any part of his family home some reason my name was added, find out later i was part of a refi. **2 issues- 1 I was disabled how was I added to loan to repay when collecting disability? I was told I was acknowledging a loan not applying had full blown back surgery heavy meds. 2- Now a yr after divorceI finally had my name removed from deed but still on mortgage note, he hasn't paid in almost 2 years, hired bankruptcy atty. but 1yr later nothing done. has to start over.. how can I protect myself as I moved on with my daughter & she added my name to title (joint tenancy) can they come after me ? I was never involved with his money or spending as he hid all issues.

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Attorney answers 3

Posted

Unfortunately, your credit will take a hit and you will be served if the property ever goes to foreclosure. New Jersey is a deficiency judgment state which means the lender could decide to come after you for the balance unpaid after the sheriff sale. However, most lenders do not go to this extreme.

You are in the right forum though. You may consider a bankruptcy to personally avoid the ramifications of his actions. Besides personally removing any obligation to the mortgage it could wipe out your joint credit cards as well.

If I can be of any assistance, please don't hesitate to call me. My office works with many divorce attorneys and their clients on these exact issues. We offer a free consultation.

Best of luck
George

The above should not be construed as legal advise. You should make an appointment with a qualified attorney in your state to discuss the specifics of your case. Additionally, nothing in this writing should be construed as a retainer agreement. Should you wish Veitengruber Law to be your attorney, please contact us to make an appointment.

Asker

Posted

Thank you, I always paid my bills, I had no idea about financial mess on his end due to disability/accident that destroyed me. I never realized he had addiction to spending until constant refi's that I never understood as I paid my own bills & cared for my daughter. I know he's destroyed my credit. He wants to save his house he went to see bankruptcy attorney but 1 yr later no progress. Our divorce has been finalized a year now, why would I need to file bankruptcy? It's his home a Loan I was told I was acknowledging he was taking a loan against home not applying. only 2 yrs ago did I know I was on mortgage after I did a credit check due to his behavior, that's when I filed for divorce. Is there a way he can retain an attorney & save his home? As I understand he hasn't called mortgage co. To try reworking mortgage.

George E Veitengruber II

George E Veitengruber II

Posted

pull your credit report at www.annualcreditreport.com and make sure he didn't put your name on any of his credit cards. It's a fairly common divorce issue. And yes, he can retain an attorney to help him save the house. That's EXACTLY what my firm does for our clients. If he's making an ok income, he may be eligible for a modification.

Asker

Posted

Since our divorce & finding out I was actually on mortgage I've check my credit report yearly, he's destroyed my credit due to this home. A home his grandmother gave him, I never wanted any part of it & it shocked me to find out I was added. I would like to speak to him & set up an appointment as right now I feel he's in denial. He's asked to reconcile acknowledging this entire financial mess is due to his own money addiction, & know he needs help. (Without trust there is no reconciling) I don't dislike the man just hurt by his actions. I'd like for him to be able to save his home & for myself know I did the best I can to help so I can get on with my own life. I appreciate your help, I know he's off on Monday's works Tues-Fri 8am-4:30/5pm if we can set Up an appointment to see what his options are at this point. We do have a civil relationship so I know he'll Be willing to go if be can get answers & actually get some help in a positive direction. Thank you sincerely, Elizabeth Novak Caddu68@aol.com 732-491-9554

Posted

If you have been removed from the deed and not the mortgage, you no longer have any ownership of the property but you still have the financial obligation. Your husband's bankruptcy case, should he file and complete one, will not remove your liability on the mortgage - only his liability. You will still be on the hook. In addition, even if the mortgage company forecloses and does not seek to recover a deficiency balance, which they arguably as the property is no longer your principle residence. In addition, as this property is no longer your principle residence, the debt forgiven as a result of the foreclosure becomes income in the eyes of the IRS and your mortgage company will send you a 1099A form the January following the sale and you may be required to pay income tax on the forgiven debt depending on your tax situation. I would recommend you speak with an experienced bankruptcy attorney about possibly filing your own bankruptcy case to avoid some of the headaches outlined above.

Bruce C. Truesdale

Asker

Posted

He was supposed to Refi & remove my name according to final divorce decree, he hired an Attorney to help w/ remodification & bankruptcy on credit cards but the attorney never proceeded with any part of case after accepting retainer. I understand he has left me in a very bad spot as I've been disabled within the time he changed things adding name & applying for loan. He wants to save house but I think it's too late & from what I've read Citicorp is impossible to work with.

Bruce C Truesdale

Bruce C Truesdale

Posted

If your ex-husband files a Chapter 13 bankruptcy case and is seeking a modification of the existing mortgage, that is not going to fix the problem. You are still on that mortgage that is being "modified." He is supposed to refinance and that is a very tough proposition in today's mortgage market. Refinancing results in a new mortgage that only he will be on. Modifying a mortgage is simply changing the terms of the existing mortgage. Filing your own bankruptcy case will take away your personal liability. Bruce C. Truesdale > -- *Our e-mail address has changed! Please make sure you update your address book in order to ensure that we receive any messages you are sending us!* * Bruce C. Truesdale PC* 147 Union Avenue, Suite 1E Middlesex, NJ 08846 Phone: 732-302-9600 Fax:732-302-9066 E-mail: brucectruesdalepc@gmail.com "Consumer Bankruptcy Spoken Here!" Web Site: www.btruelaw.com <- Get more answers to your bankruptcy questions here! Offices in Middlesex, Rutherford, Freehold, Perth Amboy, Forked River and Mt. Holly *Bruce C. Truesdale PC is a subsidiary of Abelson & Truesdale LLC.

Posted

Removing your name from the Deed only removed your ownership interest in the property, it did not relieve your personal financial obligation to the Mortgage Company. What this means is that upon a foreclosure sale, if the Mortgage Company does not receive the entire amount owed to it from the sale, they can seek payment on the deficiency from you. Assuming your ex-husband recieves a discharge in his bankrutpcy he will be relieved of any obligation to pay the deficiency balance to the mortgage company, thus the entire burden would fall on you.
In the current economic climate, it is rare that mortgage company will seek to pursue you for the deficiency, however your problems are two fold. First, since the property is not your residence, if the Mortgage Company decides to forgive the deficiency balance you will receive a 1099 for the amount of debt forgiveness, which is deemed income to you and will have to be included on your tax return and will most likely result in your owing income tax to the IRS and the State. Again your ex-husband will not incur this tax obligation as the porperty is his principal residence and additionally he will receive a discharge in his bankruptcy.
The other issue is that as i am sure you are presently experiencing, your credit is taking a beating because your ex-husband is not paying the mortgage. This will continue to negatively impact your credit until you do something to stop it, like filing your own bankruptcy. Once you file, a bankruptcy the automatic stay will go into effect, which stay will prevent the mortgage company from continuing to report negativley on your credit report, which will allow your credit scores to begin to recover.