My ex is filing bankruptcy. Will the mortgage company come after me for payments?

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My ex lives in Minnesota, where we bought a house. When we divorced, the papers awarded him the house and mortgage. We had a good faith agreement that he would refinance to take my name off the loan. He did not and things have gotten pretty bad for him and he is filing for bankruptcy.

My name is still on the lien although the paperwork specifies that it is his responsibility to pay and refinance the loan. My concern is that the mortgage company will try to collect money from me even though I don’t live in the house and can’t make the payments. I also live in California now, so I’m not sure how (or if) that affects anything.

Any help or advice on how to protect myself and what to expect would be greatly appreciated!

  1. Reply
    Mr Placid
    May 2, 2011 at 6:20 am

    That mortgage is a contract between you & the lender. Your divorce does not alter that contractual relationship. The mortgage company can come after you to the same extent as if you were still married.

    Expect, at a minimum, a huge ding on your credit report.

  2. Reply
    My Take on It
    May 2, 2011 at 7:15 am

    It doesn’t matter what good faith agreement you came to with the hubby, or even that the divorce decree says he gets the house and the responsibility of the mortgage. By him not refinancing and getting your name off of it, you are still on the hook financially. The bank probably will not come after you for the payments, but, if he ends up going into foreclosure, that is going to show up on your credit report as well as his. This is going to be a 200+ point drop for you.

    Is he going to try to save the house? If he is able to keep the house and keep up on the payments, you won’t see any fallout from his filing bankruptcy. Only the debt that you still share would hurt you if he lets it go.

  3. Reply
    July 22, 2012 at 6:33 pm

    Trade with him

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