Foreclosure in 60504>Question Details

iMaD, Both Buyer and Seller in Aurora, IL

Can the bank go after my wife's assets if I forclose or short sale my home?

Asked by iMaD, Aurora, IL Tue May 8, 2012

I have mortgage on a townhome in Illinois that I bought before I was married. The note is in my name only and my wife is not involved. I'm still current on my payments but it is getting tougher every day since I am not emlpyed right now but my wife works and has her own bank account in her name only. Assuming I can short sell or forclose, can my wife buy a home in her name only without me being on the title? Thanks in advance

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Answers

9
Call lawyer Erik Miles at 312 854 8092. He has reasonable rates and is very good at helping people like you.

Jeff Nobleza
Baird & Warner
773 677 5340
Jeff.Nobleza@BairdWarner.com
0 votes Thank Flag Link Thu Apr 3, 2014
While Illinois IS a recourse state (They can come after you, after a foreclosure, for the deficiency amount) is it NOT a community property state (They can't come after your wife).

Depending on the lender, they may be subject to the national servcing settlement that prohibits the lender from pursuing a deficiency if they participate in a short sale. The state may also have some state specific prohibitions with regard to pursuing deficiency with a short sale or foreclosure.

I would contact a professional (Real Estate Attorney) to be sure what laws apply to your situation though to be sure as we are all only offering opinions and not legal advice here.
0 votes Thank Flag Link Thu Apr 3, 2014
There might be more documentations to be given to prove the fact that your wife was not responsible for the loan. Also a good idea to consult with a mortgage person to confirm the details.

Thanks,
Subhapriya Lakshmanan
Realtor
Charles Rutenburg Realty
C:630-202-3957
0 votes Thank Flag Link Tue Apr 1, 2014
I would disagree. Why would anyone have to prove or document, a document that doesn't exist? If the wife isn't on the loan, there is no responsibility on the loan. It's that simple. Finally, what is a "mortgage person"?
Flag Fri Apr 4, 2014
As long as your wife is not in the mortgage, she does not have the responsibility for the mortgage. Her assets or credit will not get touched. As her credit will be untouched and if her credit score is still good, you can for sure buy a house in her name. Hope I answered your questions. Please feel free to give me a call if you have any other questions.

Thanks,

Subhapriya Lakshmanan
Realtor
Charles Rutenburg Realty
C:630-202-3957
F: 815-366-8072
subha@pmsi.us
0 votes Thank Flag Link Tue Apr 1, 2014
Hi Subhapriya, I have a question that I hope you can answer: I helped my parents buy a home back in 2003. It was a larger home for my parents and I, along with my little sister and grandmother. In 2004, we refinanced the house (all 3 of our names remained on the refinance: Mom, Dad, and I).
In 2013, I purchased a home on my own and moved out from the house. My father retired a few years back and my mom is considering an early retirement next year. If she does this, they will not be able to afford the mortgage. They are considering doing a short sale with the home, but are hesitant because they learned recently that I am trying to purchase a 2nd home for my own investment. I was wondering if they do decide to go forward with the short sale, will this affect my credit score? Will they be after me since I have other assets? Should they wait til I have my 2nd home before filing for a short sale? Please help.
Flag Wed Jun 11, 2014
If your wife is not on the mortgage, then her credit will not be affected. Only the borrower is affected from a short sale. Yes, your wife can buy a property in only her name. Feel free to give us a call. We would be happy to answer all your questions.

Eli Givoni
Short Sale Department, LLC
561-361-1909
eli@shortsaledept.com
http://www.shortsaledepartment.com
0 votes Thank Flag Link Tue May 21, 2013
I would also suggest talking to a tax expert.

Here's mine. He's great. http://www.slheeleytax.com/
0 votes Thank Flag Link Tue Jun 19, 2012
Hello,
Thanks for using trulia.com to get answers.. My answers are not a legal representation, they are simply an opinion and I would highly recommend that you talk to a real estate attorney on this matter.

from my experience banks have the right to go after the family assets within 10 years of foreclosure..
as long as you were single when you bought the place and you did not quite claim deed it to both of you, then your wife is not responsible.

Short sale is a different case because it is depending on what the bank is willing to do for it. Some banks do forgive the deficiencies and some will not.. so if you are in need to do short sale you need to list with an agent who is versed with the subject matter so you don't get yourself in any bad situations..

Good luck and again I would highly recommend that to talk to an attorney, if you don't know of one, email me I will provide the one that I deal with in Aurora. This attorney will give you free first consultation so you can ask your questions and get answers..

Thanks,
Inaas Arabi
Option Realty Group
630-329-5000
Inaas@hotmail.com
0 votes Thank Flag Link Tue May 8, 2012
Oh, and please send me your attorrney's contacts (imasa1@hotmail.com).
Flag Wed May 9, 2012
Thanks Inaas. Do you handle short sales @your company if I need to go this route? Do I talk to the bank or get an agent first ?
Flag Wed May 9, 2012
Go to http://www.justanswer.com, they provide legal advise and probably someone on the website can answer your question(s). I have used them before and only paid about $13, but it was not related to real estate. I hope this information can be helpful for you.
0 votes Thank Flag Link Tue May 8, 2012
If the note is only in your name, then you are the only one that will be affected. You can short sale your property, and keep foreclosure off your credit.

Yes, your wife can buy a property in only her name.

We are a professional short sale service and would be happy to explain the process to you. Please call us directly to discuss your specific situation. Our services are FREE to homeowners.

Eli Givoni, Director
Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
Serving all 50 states

MARS Disclosure for General Commercial Communications
IMPORTANT NOTICE:
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Tue May 8, 2012
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