The house AGAIN!
So BM stopped making the payment on DH and BM's jointly owned home last August when the courts adjusted his CS down. She has half heartedly tried to get a mortgage adjustment, but can't refinance in her own name and won't work more than a part time job to keep it. Her payment is $1100 a month which is standard rent around here.
She has been badgering DH to sign the deed over into her name and claims she can't adjust it unless he does. I told him to absolutely NOT turn the deed over because then he is on a house mortgage with no control over the home. Even if she gets an adjustment, she probably won't be able to get him off the loan so he would be stuck dealing with her for the next 30 years - no thanks. Her new tactic is to claim that the house has an August sale date and that the mortgage company told her they would only come after DH since he is the primary loan holder - is that true? They are both on the mortgage and the deed and we live in a community property state. Frankly, at this point, I told DH she has ruined his credit so badly and the courts won't force her to do anything so he should just file bankruptcy. Will the banks hold BM liable for the loan too?
BE VERY CAREFUL. Even if they
BE VERY CAREFUL. Even if they don't sue for a deficiency balance, they could very easily send him a 1099 for the deficiency balance! The increase in your taxes due could be substantial. And file bankrupt all you want, you have to pay the IRS.
If the bank agrees to a short sale, then you an easily (usually) get them to agree to neither. I would get his money and credit away from her as fast as possible. You will never be able to live a free life like this.
Nope, he should NOT sign the
Nope, he should NOT sign the deed. Period. They'll come after who ever has the money.
Who was awarded the house in
Who was awarded the house in the divorce settlement? In our case, BM was awarded the house in their divorce (but the mortgage was only in his name) and my FDH DID have to quit claim himself off the deed before she could file a loan assumption application. Of course, she has still not completed her application, but in all fairness, it's only been THREE YEARS. Guess she's doing the best she can given such tight time constraints. The judge last month put a fire under her feet and gave her HIS timeline for getting this done. Next week is the deadline, so we'll see...
I would be getting a property
I would be getting a property lawyer on this one...
there are two sides here....one is the banks side
and one is the fact that they are divorced...shld have a divorce settlement and in that it should state she can live in matriomonal home but must pay...
SELL THE THING if you can...before its too late...
I think you could get a realtor involved...and then get her out...
can you buy her out? then rent it back?
Yikes, what a mess. The
Yikes, what a mess. The original divorce decree states that the property issue will be held so there is no real order. We requested that the court either force her to pay the mortgage or the house be put up for sale. The judge wouldn't do that.
The house is $50,000 underwater so it can't be sold. We offered to take the house over for BM, thinking we'd rent it out, but she wouldn't do it. We've heard she is telling people that she will just sit in the house until the bank kicks her out, which sounds like it may be sooner than later if there is an August sale date now. At this point, I don't want the house. DH and I have been thinking about getting a quiet divorce to protect me and my assets, but only telling the people who need to know and still living as though we are married. We can't get the courts to do anything about the house and BM.
That's probably your best
That's probably your best move. He an also contact the bank himself to see what their intentions are. At least he won't be stuck getting his information second through her.
Banks will do short sales. They will accept much less than the balance due. You would be shocked at the losses they're willing to accept. But, then again, they may try to send your hubby a 1099. There's the kicker. You think you walked scott-free then Jan comes around and surprise! You can force them to sign a document stating they will not go after you for the balance and will not 1099 you for the balance. I helped my brother in law recently sell a $750,000 building through a short sale. It sold for $15,000! That's right. Zero's are correct. He walked.
Perhaps a case of arson is in
Perhaps a case of arson is in order? }:)
With BM still in the house?
With BM still in the house? Sounds great!
Before all of this she seemed
Before all of this she seemed to care about her credit at least a little bit. I guess not anymore, which is stupid because she is 40 years old with three kids and no education. She has never lived on her own - she went straight from her parent's house to being married to DH. I don't think she understands how important good credit is to rent a decent house at a decent price. Not to mention ever getting ahead or buying another house.
I guess I just want to see BM get her share of the banks crap - so tired of her demanding 50% of all the assets and NONE of the debts or liabilities. We'll just have to get DH to claim bankruptcy, not much more choice if the courts are going to force him to play games with BM while she lives rent/mortgage payment free.
Him declaring bankruptcy will
Him declaring bankruptcy will not dissolve her liability to this debt. If the house is in both of their names, how would this even work? Just remain on her credit as an upaid liability and appear on his as part of bankruptcy? Honestly, if he declared bankruptcy, I would think the bank would still come after HER for the debt or some portion thereof?!? One can hope...
Agreed - we haven't told her
Agreed - we haven't told her that he filing bankruptcy. She is claiming that the mortgage holder told her that they will only come after DH for any deficiency since he is the primary loan holder. It's probably just another tactic to try to get him to do what she wants. Although, she is pretty stupid - the mortgage holder could have been telling her that in reality if BM has no money, they will go after the person who does. Who knows - DH is calling the mortgage holder today to find out.
Filing Bankruptcy won't free
Filing Bankruptcy won't free you from the 1099 obligation. They will send him a 1099 indicating that he "earned" what ever the def balance was. He will have to pay taxes on that amount.It happens all the time. My sister got a 1099 after letting her house go into forclosure. She filed bk, but the 1099 doesn't go away. She had to pay taxes of $92,000!
What would your next step be
What would your next step be duct tape - if it were you? Try for a short sale? Unfortunately BM won't cooperate, but I told DH to just start the proceedings with a program I found that helps with short sales and then get the issue resolved at their next court date in April.