I've got some questions?????

[Aggravated]

So, I was divorced back in May 2008. The ex-wife has been stalling the foreclosure on our jointly owned home. I no have not lived there since May 2008. My name is still on the mortgage note, and I have been begging the bank to remove my name since May 2008. My credit is now pretty much nothing. I've been trying to get the ex-wife to sell the jointly owned property for at least a year now. But she want's to keep it, yet she cannot afford it. As of right now she still owes the mortgage for December 2008! And she is still living there for free. (pretty much). Today was the foreclosure date, and before the auction she file for chapter 13, so everything came to a dead stop.

My questions are:

1: I want my name off the mortgage ASAP, since she has already ruined my credit for years, what would be the best way to do this considering that the chapter 13 has been filed now?

2: I have talked to the mortgage holder and they are willing to help me sell the property for the amount we owe them, would this be a good thing to bring up at the "creditors' meeting" to hopefully get this dismissed?

3: The divorce court already has ruled that I was no long financially responsible for the property as of Sept 2008. Is there anything that I can file being a co-borrower, to get all the info that the ex should have filed? (ie: in criminal case's they file a "discovery", is there any such thing with the bankruptcy court?

I guess that is it for now.....

Thanks,
J

[rrockinggramma]

well divorces do mess up one's credit.

There is nothing you can do to remove your name from the mortgage unless

1. she refinances it into her name only
2. she sells the property


Now that she has filed a chapter 13 to save the home, neither of the above will happen. So in essense, you are stuck.

I am sure the bank wants to sell the home but because she filed chapter 13 everything stops. And as long as she makes her payments to the trustee ande the arrearage is caught up etc then there is nothing you can do but wait for her to finally realize that she can't afford the home and it is time to move on.

GL

[Aggravated]

Thank you for the reply...

But really there is no way to get the court to see that there is a better way to handle this? I'm going to her "creditors' meeting" (the first one) to state my show that trustee that she has had roughly 4 chances to make this right from the family court and has failed and refused to do so everytime. Whats going to make this time any different?

Thanks,
J

[rrockinggramma]

don't be offended if the trustee brushes you off. He will go by the divorce paperwork in place. And according to you, you are not responsible for paying for the mortgage and she has taken the step of filing a chapter 13 to get the mortgage current. She is doing what she needs to do to make it right. You can't force her to sell and she cannot refinance now that she has filed a chapter 13. I know it stinks that your credit is now effected but you can't force her to sell it no matter how much you want her to. Because you are not really a "creditor" the trustee may not be sympathic to your side of the story. Just my 2 cent. .. . .

[Aggravated]

This is where the problem lies. I was ruled as not being responsible for the mortgage as of Sept 2008. Yet because she has failed and refused so many chances handed to her by the court and the mortgage holder, my name is still on the mortgage note and has a very ill effect on my credit. With absolutely no repercussion on her credit from me. She still owes the mortgage holder the payment from December 2008! I would hope that the trustee will see my point as to; why should she have another chance when she has failed at all the previous attempts? And it's no due to lack of funds, per her "myspace page" this would due to lack of responsible fund management.

I also understood this first meeting to be a whether or not she is accepted under the 13 laws? I think that the trustee can still dismiss this filing if they deem fit. That would be my entire purpose is to prove to the trustee and all others evolved that she will not and hold to any agreement. Make would make this (filing 13) any different from a Judge telling you, that you had to do something, and you completely refuse to do so?

Thank you for all the great info.

J

[BigJohn]

What State are you in?

[BigJohn]

Your name is still on the mortgage, correct?

[HHM]

Welcome to the reality of divorce, there is NOTHING the court can do to effect your contractual relationship to the bank. If you were on the mortgage, there are only 2 ways to get you off the mortgage (as was previously mentioned)
1. The ex refi's you out
2. Sell the house.
Or, I suppose #3, you file BK.

This is not an issue for the trustee. If she is behind on payments, that is an issue between her (you), and the lender. The trustee could care less. The only thing the trustee cares about is getting money for her unsecured creditors.

[Aggravated]

I'm in NH. And yes my name is still on the mortgage. Yet, the family court rule in Sept 2008, that I was no long finacailly resposible.

HHM, You say that the trustee only cares about the unsecured debt? If this is true, why would the mortgage be included in this? I had the property appraised in 2006 for $265,000.00. She owes about $230,000.00. Granted the houseing market isn't up to par these days, we should still be able to sell it for enough to break even and pay off the mortgage holder, would the trustee look at that?

My whole goal in attending this first meeting, is to shed some reality light on the entire situation, in hopes that the trustee and creditors will denia her filing, and payment plan.

Thank you all for this great advise, and tread.

J

[HHM]

Yet, the family court rule in Sept 2008, that I was no long finacailly responsible.

What you are not getting is that the Divorce Decree is between you and your Ex. When the Divorce Decree says you are no longer financially responsible for the mortgage, all that means is you are no longer responsible "to your ex" for paying the mortgage. The Divorce Decree does not touch the underlying mortgage, change the terms of the mortgage, or otherwise release you from the mortgage vis-a-vis the bank.

What I mean by the trustee only caring about unsecured creditors, is that the trustee only cares about getting money to pay something to your unsecured creditors. The mortgage is still a debt, and ALL debts get listed in the bankruptcy.

Your plan to attend the meeting will be a wasted effort. Shed what light? Unless you have evidence that your ex committed fraud, there is NOTHING for you to do or say the trustee meeting. At least, based on the info that your provided, nothing that would change anything.

[rrockinggramma]

look at it this way, by your ex filing the chapter 13, if she can stay current on the payments and keep up her end of the bargain, your credit will improve and she should be able to refinance the house thereby getting your name out of it.

[Aggravated]

So I just got the "Notice of contingent on confirmation" today. It does say right in it that if I want to object to it I can, and there will be a hearing. If I object to this, and go in front of a judge stating that I know that she will not be able to make these payments, (unless she is hiding some income). And that this should be considered Bankruptcy abuse, since we can sell the joint property, and payoff all debt associated with the property, which is why she is filing 13 in the first place.

Does anyone think this will work? I have a year worth of court orders that show that she has had many opportunities to make pay this debt, as well as agreements with the listed creditors that she has failed and refused to follow.....

I'm think I'm going to object, I'll be consulting with a lawyer tomorrow.



Thanks,
J

[justplaintired]

You know I read your thread earlier and was wondering exactly what does the divorce papers say? Didn't they judge make an order on how the house was to be handled? In most cases the judge order that either she/he buy out the other party, or that the house be sold and profits split. Did you not get any kind of order on how the property was to be handled? Did you have an attorney?

Frankly if she is disobeying an order by a judge she is in contempt. In which case you need a lawyer. If nothing is in writing in your court documents which to me would be very odd, then your name is on the mortgage and are still just as responsible as she is. Have you talked to an attorney? I do believe in your case it would well be worth the money to get some legal help with this. You are on the hook for that house just as much as she is and frankly that to me gives you some legal ground to stand on. Hopefully you have something in that divorce decree that gives you a leg to stand on.

[Aggravated]

The final decree state that she is awarded the property, but she had 30 days to refinance to remove my name, or we sell the property. I think that part of the decree got a little muddy at some point. I spoke to a lawyer today, his advice was the only way to remove my name is to go to the creditors meeting, in which I am listed as a creditor, and try to convince the trustee that there is no possible way for her to make these payments. Which is true, she had a signed agreement with the mortgage holder to pay only $150.00 extra a month, and she refused and failed to comply. So, for her to state in her repayment plan that she is willing o pay $420 a month extra is a bit insane, considering that she doesn't even make that much. So, my plan as of right now is to file a continuance on my petition for contempt on her, and attend the creditors meeting, and ask those great questions that throw a lot of doubt into the air. And hopefully with me doing this the trustee will see that I'm being honest about the entire situation, and either discharge the chapter 13, or recommend chapter 7! Either way, if the case gets discharged then I will continue it in the Family division to get my name removed, and if it goes to chapter 7, that is just a liquidation bankruptcy anyways, so the property will be sold, and I will no longer have any ties to it.

Let me know what you guys think?!?!?!

Thanks,
J

[hereforinfo]

Either way, if the case gets discharged then I will continue it in the Family division to get my name removed, and if it goes to chapter 7, that is just a liquidation bankruptcy anyways, so the property will be sold, and I will no longer have any ties to it.

Not quite. Depending on your state, the bank can still come after you for the deficiency balance if the home is foreclosed upon. An appraisal done in 2006 means absolutely nothing. Real estate values have declined in most areas by about 40% since then. Even IF your house is currently worth the amount of the mortgage, it won't go for anywhere near the real value in a foreclosure sale. Plus the bank will add on a lot of fees. If she files chapter 7 then she will no longer be responsible for the debt, so the bank may come after you.