Riddle me this, Foreclosure Experts & Legal Eagles.......

[last2cents]

I wasn't quite sure where to put this - so if this is the wrong sub forum, mods, please move

Here's the dilly:

My fiancee (to be know hereafter as Mr. Last2Cents, or ML2C) has a house that is currently underwater by about $120K. He had a tenant in the place who bailed on their lease in 02-2010. The only way he was making that payment was with the rental income (he lives in my house with me). When the tenant bailed, he stopped paying the mortgage (1st and 2nd with the same lender -EMC / Chase)

The 2nd has been charged off and sold to a debt collector who ML2C just got a lovely letter from urging him to pay (ummm...no, I don't think so), and the 1st has been scheduled for foreclosure since 02-2011. The trustee sale has now been postponed four times since that date and is now scheduled for 6/27.

We have been postponing our wedding date pending this forclosure, because neither one of us are sure if the F/C occurs after our marriage, if that makes me liable for the deficiency or any other lawsuits that come up (we're in AZ, a community property state) post wedding. There are a few other cc's that he'd defaulted on around the same time as the mortgage and all are nearing the end of their SOL's, so I'm thinking that this year will be ripe for lawsuits.

As long as we're not married, he is collection proof. ML2C is disabled and only drawing SSD as income. He's got no other assets and I quite frankly can't see the sense in his filing for BK (which I realize would nip this issue in the bud), but would cost us $$$ we don't currently have.

for the record ML2C is truly disabled and can't hold down a job at this stage of the game - just trying to ward off any trolls

But once we get married - can all his past whoo ha come back to haunt me? I'm thinking not, since this is all pre-marital community issues - but if lawsuits are filed after the wedding does this apply?

Any help would be GREATLY appreciated!

[despritfreya]

As it relates to the 1st mortgage, unless the property is over 2.5 acres, it is unlikely that there be a deficiency. The 2nd (whoever it was transferred to) can sue under the promissory note.

As it relates to you being responsible for payment of his pre marital debt. . . you will not. . .

ARS 25-215:

A. The separate property of a spouse shall not be liable for the separate debts or obligations of the other spouse, absent agreement of the property owner to the contrary.

B. The community property is liable for the premarital separate debts or other liabilities of a spouse, incurred after September 1, 1973 but only to the extent of the value of that spouse's contribution to the community property which would have been such spouse's separate property if single.

C. The community property is liable for a spouse's debts incurred outside of this state during the marriage which would have been community debts if incurred in this state.

D. Except as prohibited in section 25-214, either spouse may contract debts and otherwise act for the benefit of the community. In an action on such a debt or obligation the spouses shall be sued jointly and the debt or obligation shall be satisfied: first, from the community property, and second, from the separate property of the spouse contracting the debt or obligation.

Hope this helps.

Des.

[helpmeout]

One other thing, don't have a joint account with your fiance. The creditors may be able to use that as a back door to get to your income.

[last2cents]

des - thank you for that clarification!

helpmeout - we do actually have a joint checking account - but my name is on it just so I can handle paperwork without having to pester him to sign a check. None of my money goes into that account - just his SSD.