[faith]

Originally Posted by ForeclosedInVegas

Love this website! I'm hoping to find some more

Originally Posted by ForeclosedInVegas

Anyone know of a Statute that would prevent Mortgage Guarantee from suing my wife for a debt she didn't sign for? It seems like this would set a very dangerous precident - allowing one spouse to obligate the other without knowledge, etc...

Hello and welcome to this forum,
The only "insured" in a PMI contract is the lender; they get paid off in the event of default on the part of the borrower. It's more like a bonding and surety contract, which most people don't really understand either, it really just an extension of credit, and so is PMI to a great extent. In the end game, the borrower is responsible for any balance remaining on the mortgage loan, including any court costs/attorney fees, etc. incurred on the part of the mortgage company.

Even though your wife's ssn is not on the loan but if you put her name on the deed, and if she is married to you, it is still a conjugal property, and that's how lenders and PMI company's sees it.. The Law dictionary defines conjugal rights as "The rights of married persons which include "the enjoyment of association, sympathy, confidence, domestic happiness, the comforts of dwelling together in the same habitation, eating meals at the same table, and profiting by the joint property rights, as well as the intimacies of domestic relations."

Nevada is not listed as a non recourse state:

.Anti-Deficiency / Non-Recourse States
Alaska
Arizona
California
Connecticut
Florida
Idaho
Minnesota
North Carolina
North Dakota
Texas
Utah
Washington


In a non-recourse mortgage state, borrowers are not held personally liable for more than the home’s value at the time that the loan is repaid. The lender may recoup some of its loss through foreclosure. However, the lender may not sue the borrower for additional funds. If the foreclosure sale does not generate enough money to satisfy the loan, the lender must accept the loss.

Each non-recourse state has its own anti-deficiency statutes that prohibit lenders from seeking judgments. In a few cases, anti-deficiency statues do allow lenders to collect a limited amount of money from the borrower (such as the difference between the debt and the fair market value of the property).

Note that in some states (such as California) non-recourse laws apply only to “purchase money” loans (i.e. original home loans that are used to purchase property). Almost all HELOCs and home equity loans are considered recourse loans and lenders for these loans may sue borrowers to recoup loss. (Except in some cases where the second mortgage lender forces the foreclosure. See: HELOC Foreclosures). There has been some speculation that mortgage refinances do not constitute “purchase money” loans. However, there have been no cases to determine this issue one way or the other.

HOWEVER, NEVADA HAS A ONE ACTION RULE,.

In some states, lenders are only permitted a single lawsuit to collect mortgage debt. This plays out differently depending on the state’s laws. In New York, for example, a lender must choose between the actions of foreclosing on the property or suing to collect the debt.

The following states have some type of one action statute:

California
Idaho
Montana
Nevada
New York
Utah

THE ONE ACTION RULE:
In ffice:smarttags" />lace w:st="on">Californialace>, a mortgage lender can only take one action against you: A non-judicial foreclosure, or a judicial foreclosure. A non-judicial foreclosure is just like the PURCHASE MONEY RULE, a lender can only sell the property to pay the loan. If the sale does not pay the mortgage, the foreclosing lender cannot get the unpaid balance from you. However, the lender can get the balance from you in a judicial foreclosure. The good news is judicial foreclosures are too uncertain and costly for lenders that they are almost non-existent. BUT, (pay attention, this is important) if a lender’s security interest is wiped out by a senior mortgage foreclosure, the junior lender can obtain a deficiency judgment for their unpaid balance because they have not had their ONE ACTION against you yet (subject to the PURCHASE MONEY rule of course). This situation is very common these days for that second mortgage you used to remodel the kitchen and bathroom.fficeffice" />>>

It's really important that you reach a settlement with the creditor immediately. If they are asking you to settle with them for 20%, why not make a counter offer to settle it at 10%, payable in 30 years and no interest, a letter stating they will not pursue anymore deficiency judgment against you and they will report it as paid as SETTLED.

It is for your best interest that you seek a REAL ESTATE ATTORNEY WITH EXPERIENCED IN FORECLOSURE, BANKRUPTCY LAWS, maybe try NACA for a pro bono lawyer. Or you may search the attorney's in this forum and ask for a free consultation. Make sure you search the Nevada BAR Association to see if the lawyer is license to practice law.

Hope this helps.

God bless and take care.