I want off the mortgage !!!

[48adam22]

I posted this in another area, then found this section. Sorry for the double post i'm still a newb.



I just filed for Chpt 7,,,, Cent CA. I am listed as a co-owner / debtor on the 1st and 2nd deed mortgage of a home that my ex-wife received in the divorce. As far as the County recorder's office is concerned, she is the owner of the home, but SESLOC FCU still holds me 50 % financially responsible. I listed these debts on schedule D. My ex-wife is always one month behind on the payments.

On Form 8 - Chaptor 7 Individual Debtor's Statement Of Intention, I indicated the property will be surrended and not reaffirmed. I also sent to the creditor a Notice To Creditor Of Filing For Bankruptcy letter stating I did not own the property, have any interest in the 1st or 2nd deed mortgage, and would not reaffirm these debts.

My question is will the chapter 7 discharge let me remove my name from these two debts ?? Make her refinance on her own ?? I really don't want to stay on the 1st or 2nd mortgage. If she defaults in 2,3,7 years, it will effect any good credit rating that I might have been able to get higher.

Thanks.

[DebtEnder]

A chapter 7 will remove your responsibility for the debts. If there is equity in the house there may be some complications if the trustee wants the value via selling it but that's not really an issue of yours. You don't live there. If there is no equity then there is no real worry.

As long as she keeps paying on it and the court does not want it nothing will really change save the fact you never have to worry about it again.

If she defaults later there is nothing that can be done to you via the mortgage holder. Your liability to the debt is gone via BK. They can not update your credit report after noting it as IIB, included in bankruptcy, be it 2 months or 20 years later. Just make sure you never sign any paperwork from the bank saying you want to reaffirm anything. Which considering it's not your house I see no reason why you would ever think of doing that.

[48adam22]

Thanks D E. I was pretty sure that would be the answer, but wanted other brains to answer too. Yeah, she is very upside down on the mortgage, so there is NO equity. I think with the 1st and 2nd combined right now, about $ 423,000.00 is owed, and the approx value is $ 220,000.00 Yep, that's our economy,,,,,,, hope it will get better in a few years. This next question may be more of a real estate question,,,, but does anyone know if the Lender (Credit Union) will make her refinance on her own after I refuse to reaffirm ? I kind of hope they do,,,,,,, I bought her the home and now she's living there with her 4 adult kids that do not work. I guess it will be hard to refinance on a single income,,,,, oh well

[DebtEnder]

Well they can't make someone refinance, if they can't they can't. However if she fails to keep making payments they will come take the house and if she's on the note at all and does not bk herself then it's all on her. I don't know if Ca is a recourse state. Ie if the bank can come after the former owner for negative value after foreclosure. Once again Bk protects you from this if they otherwise could.

[bulletproof77]

No, California is a non-recourse state..They cannot come after you for any deficiency after foreclosure.

[AngelinaCatHub]

You will have to take into account your divorce agreement. This cannot be discharged. If for some reason, you were to give her the house, were you to hold the payments too? That if true has your answer. 'Hub

[48adam22]

No, in the divorce agreement I was not assigned any part of the payments for the home. She tried to get me to pay 1/2 of the back property taxes for the home, and also for 2 1/2 acres of vacant land she also got in the divorce. I argued (in pro per) that since I had given her the land one year prior to sepparation and the house shortly after I had moved out, the property taxes should be her responsibility. The Judge agreed with me and ruled she had to assume the back taxes. The funny part of this is in California if you don't pay you property taxes for 4 or 5 years, ANYONE can pay them and they suddenly own your property I have met a couple of guys that have done that.