My ex-wife and I divorced earlier this year (2009). As part of the divorce and property settlement, I got use and possession of the house, with the caveat that I have her name removed from the mortgages and subsequently the deed by April, 2010. Unfortunately, I am not able to refinance right now for a number of reasons (bad credit, negative equity, etc.). I was content on waiting until April, 2010, seeing if I could refinance at that time and then seeing where the chips fell in state court as to a Partition and Sale of the Property. The property is held as joint tenants since we purchased it before we were married. The first mortgage is now current and was recently reinstated when I completed a Repayment Plan that occurred when I was unemployed. I continue to make the regular monthly payments. I make regular payments on the second mortgage, but it was charged off as "bad debt" by the mortgage holder. Obviously they did not release their lien however.
There is no equity in the house at this point.
My ex-wife has filed for Chapter 7 bankruptcy and has indicated her intent to surrender the property. I would like to stay in the house if at all possible. I have the means and the desire to continue making the regular payments.
What will the trustee want to do with the property as part of her BK? Since their is no equity for her estate, will the trustee simply abandon the asset? If the trustee attempts to sell the property, which I doubt will happen, can I object based on "detriment to the other co-owner".
If the asset is abandoned by her estate, what will the bank do? Will they try to foreclose even though the mortgage is being paid on a regular basis? Do they have grounds to foreclose under Maryland state law? Or, will they just leave everything "as-is", happily accept my money every month and move forward? Can they require her to execute a "quit-claim" deed since she will no longer be responsible for the mortgage? I should say that under the divorce agreement I'm responsible for everything related to the house.
Any information is really appreciated.
There is no equity in the house at this point.
My ex-wife has filed for Chapter 7 bankruptcy and has indicated her intent to surrender the property. I would like to stay in the house if at all possible. I have the means and the desire to continue making the regular payments.
What will the trustee want to do with the property as part of her BK? Since their is no equity for her estate, will the trustee simply abandon the asset? If the trustee attempts to sell the property, which I doubt will happen, can I object based on "detriment to the other co-owner".
If the asset is abandoned by her estate, what will the bank do? Will they try to foreclose even though the mortgage is being paid on a regular basis? Do they have grounds to foreclose under Maryland state law? Or, will they just leave everything "as-is", happily accept my money every month and move forward? Can they require her to execute a "quit-claim" deed since she will no longer be responsible for the mortgage? I should say that under the divorce agreement I'm responsible for everything related to the house.
Any information is really appreciated.
Bankruptcy Wizard
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