Question BK/Foreclosure while separated

[Reneeinil]

I have been separated from my husband since June of 2008. Our house went into foreclosure recently. It is an interest only loan, and neither one of us could afford it.

He is in the midst of Chapter 7 BK. I could file with him, but have fairly good credit with almost no real debt.

The loan on the house was only in his name. All the papers regarding the house have been sent to him exclusively until today. I got served with court papers. I am confused because I was not on the loan. It looks like I am still on title and signed the mortgage, but not the loan.

His attorney told him that the house woul;d not come back to me if I did not file BK. Now I am not so sure. I am on disabilty with a very fixed income. He had major debt due to gambling.

Do I have to respond to these papers? Am I responsible even if I am not on the loan?

[justbroke]

Do I have to respond to these papers? Am I responsible even if I am not on the loan?

In many States a spouse must be notified in any foreclosure proceeding because you are considered a co-defendant. You're a co-defendant because you may have an interest in the property. In community property States this is even more the case. So what State do you live in?

I don't know what you mean by "looks like I am still on title and signed the mortgage". Were you ever on the title or had you signed the mortgage? It's confusing what you mean.

[Reneeinil]

This house had been refinanced several times. I was always on the title, but last time we refinanced, the loan was put in my husbands name only. In these documents, it says we are co-owners, but he is only on the note, and is financially responsible. So why was I served, and what should I do? I live in IL? thanks

[justbroke]

This house had been refinanced several times. I was always on the title, but last time we refinanced, the loan was put in my husbands name only. In these documents, it says we are co-owners, but he is only on the note, and is financially responsible. So why was I served, and what should I do? I live in IL? thanks

The problem must be that you are on the Title. The foreclosing entity must list everyone with liens or possible liens (even a condominium association, homeowner's association) and residents (renters, or anyone over 18 years of age living at the property), as defendants to the lawsuit.

[Reneeinil]

So what do I do? Do I have to respond? Will I be liable after his personal bankruptcy? Thanks

[BK2008]

Confused. Who is suing you? The mortgage lender??

If so, is there an upside down balance they are after??

[Reneeinil]

The mortgage lender is suing me in Chancery Court, Cook County, Illinois. What do you mean upside down balance? We had an interst only mortgage. Now the house is probably worth about 75K less than what we owe. They state in the papers that my ex is only on the note. I am still on the title. Not sure how all this stuff works either. Thanks

[justbroke]

So what do I do? Do I have to respond? Will I be liable after his personal bankruptcy? Thanks

You are a defendant only inasmuch that you have an "interest" in the property, since you are on the title.

If they foreclose, that does nothing to you because you don't owe any money to the mortgage company... so they aren't "coming" after you. They are just required to let all interested parties know that they are foreclosing, because you may have a defense or a higher priority than they do. When foreclosing, even a second mortgagor is a defendant.

You can't be liable on a debt that is his after his discharge. That is, if you neer signed any loan document and are not on the mortgage/note, then you have no liability.

If you're concerned, you should seek legal counsel.

[Reneeinil]

Thanks so very much, for all your help. I feel much better now. Renee

[justbroke]

Thanks so very much, for all your help. I feel much better now. Renee

In that foreclosure lawsuit, the "Note" (Mortgage) should be attached. Just check the first page and see who it is recorded as owing the mortgage/note. If it lists only your estranged husband's name... you should be good. If you name appears on that mortgage/note... it's a different story.