Foreclosure in 85257>Question Details

Ptrlaz, Other/Just Looking in 85257

If my ex-husband files bankruptcy what happens to the loan and house? The mortgage loan is solely in his name, but house was Quit Claimed to me.

Asked by Ptrlaz, 85257 Tue Apr 6, 2010

The Mortgage (Wells Fargo) is solely in his name. If he files BK will the bank work with me?

If he does file bankruptcy his intent would be to file BK specifically on the home loans. He has no other debts, so he would not plan to reaffirm the home loans.

I want to keep the home and can afford it, however, there is no equity so I'm not able to refinance. There is also a 2nd and 3rd lien on the home (in both names), as of now, all loans are current.

Any experiences or suggestions?

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Answers

11
There could be a lot of moving parts to your scenario so you should speak with an attorney about this so that you have an answer that will protect your best interests.
0 votes Thank Flag Link Wed Oct 15, 2014
I know a qualified attorney that could help you in this situation.
0 votes Thank Flag Link Wed Sep 24, 2014
My apologies, I did not see the additional information you posted about the payments being current and wanting to keep the property. Call me to discuss, I think I can help you.

Lisa Markham
Envoy Mortgage, Ltd.
NMLS# 947738 / AZ# 0921717
(O) 520.612.0480
(M)520.240.9602
lmarkham@envoymortgage.com
https://lmarkham-envoy.mortgagewebcenter.com
0 votes Thank Flag Link Mon May 5, 2014
Hi Ptrlaz,

This can be a tricky situation. Couple questions, are the payments current? If not, how far behind are they? If so, who is making them?

You may be able to refinance the property, if you want to keep the it. The only concern I have for you is that once you have an ownership interest in a property in AZ. that can be a game changer. Was the Quit Claim Deed the result of the divorce or was it prior to?

Basically, you should have your divorce decree reviewed by a lender's underwriter, a title agent or even an attorney to be sure that this will not affect you in a negative manner.

Sincerely,

Lisa Markham
Envoy Mortgage, Ltd.
NMLS# 947738 / AZ# 0921717
(O) 520.612.0480
(M)520.240.9602
lmarkham@envoymortgage.com
https://lmarkham-envoy.mortgagewebcenter.com
0 votes Thank Flag Link Mon May 5, 2014
I have helped a client with a similar issue just recently. I was able to refinance for them. There were some paperwork documentation issues to provide but I got them refinanced at a very good rate. I am a Mortgage Banker in metro Phoenix, AZ. I lend in both Arizona and California. If you or someone you know is looking for financing options, please feel free to contact me or pass along my information. 623-340-0934 Korene Clopine-Seaman NMLS # 218520 KLCSLoanTeam.com We are Direct Lenders, WE CLOSE LOANS!
0 votes Thank Flag Link Thu Jan 24, 2013
If you can conform with the payments I would contact all parties involved and inform them of this situation, they will work with you. You being able to make payments is a win win for the lenders allowing these loans to go through a bankruptcy would leave the lenders in a very bad position.
The fact that the home was quit claimed to you means nothing with regard to these loans, the loans were filed on the land records prior to the quit claim and to be honest when these lenders find that out they may default you anyway most mortgages have a specific clause disallowing quit claims.
Your ex is making a big mistake claiming bankruptcy to remove 3 debts from his record that can be paid by you. Bankruptcy is for life, many claim it is for 10 years while it sits on your credit report but look at most loan applications especially a 1003 (mortgage app) it asks if you ever claimed bankruptcy and if one lies it is considered a felony punishable by jail time.
0 votes Thank Flag Link Wed Apr 7, 2010
My suggestion is to talk with a lawyer. A quit claim transfers whatever rights a person has in a property. The lender also has rights that are superior to the quit claim rights.
0 votes Thank Flag Link Tue Apr 6, 2010
The bankruptcy will effect all loans for him and after the bankruptcy is discharged the banks will determine what they want to do. The primary loan will most like complete the foreclosure and take over the property. The primary loan will not have a effect on your credit but the second and third mortgage will effect you, especially if there is recourse on the loans. This is what you need to check out because if these are recourse loans the banks may come after your for a deficiency.

I would see if you could talk your husband into doing a short sale so you can address the second and third mortgage, if you can. Other wise you may not have a home and have a deficiency judgement against you.
Get an expert to assist you, quick!

Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Miwlaukee

http://www.milwaukeebailout.com
0 votes Thank Flag Link Tue Apr 6, 2010
The Quit Claim doesnt change the loan you will have to apply for your own loan. Please see answer below I and I will guide you through a plan. If your on the other liens you will have to resolve them some how. I have a great resource to answer all the questions!

There are a number of options! It sounds like you can finance on your own. I have some great sources on my site for your current situation. You will need to also check with the attorney on the other liens!

If you would contact me I could direct you in the right direction!

Feel free to contact me with no obligation!

Sincerely, Lucinda


Lucinda Tkach
lucindat@longrealty.com
602-799-6846
0 votes Thank Flag Link Tue Apr 6, 2010
Your situation is very complicated and likely deserves the services of an attorney. A BK and or Real Estate attorney would be areas of practice to look for.

I have a BK attorney that does consultations on Short Sales fairly often and might be a good resource for you.
Web Reference: http://www.McVinua.com
0 votes Thank Flag Link Tue Apr 6, 2010
Your best bet is to speak to your BK attorney. However, this I know. You can opt to keep the house and out of BK. You will want to speak with the mortgage company beforehand and try to come to a loan modification agreement. Keep in mind that if you keep it, the 2nd, and 3rd will still come after you. By keeping the house you assume all the debt deeded to it. The only way to get rid of it all is to let the house go in the BK.
0 votes Thank Flag Link Tue Apr 6, 2010
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