Can a bank take away my paid off home when trying to collect on my ex husbands foreclosure properties? 16 Answers as of June 12, 2013He 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.
Musilli Brennan Associates PLLC | John F Brennan
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.
Answer Applies to: Michigan
Law Offices of Joseph A. Mannis | Todd Mannis
Well you do have debt in so far as your name is on the mortgages. Is there a second mortgage or a refinance on these houses? If so, they could come after you for a deficiency. You might want to consult with a bankruptcy attorney face to face.
Answer Applies to: California
A Fresh Start | Dorothy G Bunce
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.
Answer Applies to: Nevada
Law Office of Norman Moore | Norman P Moore Jr
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.
Answer Applies to: Wisconsin
The Law Office of Darren Aronow, PC | Darren Aronow
They can not take away your home but they can go for a judgment against you for the deficiency after an auction sale. If the bank is successful in getting a judgment then that judgment can attach to your home.
Answer Applies to: New York
The Michigan Bankruptcy HQ | Joseph P. Saulski
If your name is still on the loan document (note), then you are still contractually obligated to pay per the note. The mortgage is the security the lender has for giving the loan. A mortgage entitles the lender to take possession of the collateral (the house) if the note is not paid per its terms. If you obtained the home loan with your husband and then later divorced, you are likely still obligated to pay regardless what the property settlement agreement stated in the divorce decree. Unless, the house was refinanced or sold after the divorce, which would extinguish the note and mortgage originally with the married couple. If a house goes into foreclosure, it is likely that the proceeds for the auction will not cover the amount owed on the loan and there will be a deficiency. In Michigan (and other recourse states), the lender may seek payment from you for the deficiency. They may go to court and get a judgment and conduct collection activities. Often these collection activities are limited to garnishment of wages and bank accounts. In rarer occasions, the lender will seek to seize property and have that auctioned to pay the judgment. In Michigan, although a judgment creditor can place a lien on your real property (home) for the judgment amount, the lender does not have the right to foreclose and will have to wait to be paid on the lien at the time of sale or re-finance.
Answer Applies to: Michigan
Lyndon Ruhnke, PC | Lyndon Ruhnke
From your question it is not clear if you were ever on the mortgage debts for the homes going into foreclosure. If you were you will possibly be liable for the deficiencies on those debts if there are any. You should contact a bankruptcy attorney.
Answer Applies to: Oregon
The Law Offices of Mark Wm. Hofgard, Esq. | Mark William Hofgard
If your home is owned free and clear by you, and there is no deed of trust naming your home as security for another loan, then the bank may not foreclose on your home due to the default on other mortgages. Under certain circumstances a bankruptcy court can reach back and void, or undo, transfers of assets prior to the bankruptcy filing. If you received title to the house from the ex, make sure to have a bankruptcy attorney (yours) review the transaction.
Answer Applies to: Arizona
Richard L. Hirsh, P.C. | Richard L. 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.
Answer Applies to: Illinois
Gregory J. Wald, Attorney at Law | Gregory J. Wald
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.
Answer Applies to: Minnesota
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
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.
Answer Applies to: Wisconsin