Divorced a few years ago

**Jdrew** · 09-10-2012, 10:03 PM

I divorced a few years ago. Husband got the house which was upside down by 100k, but he stayed and even payed mortgage for a little while. Finally after all this time and 1 year of no payments the bank is foreclosing on property. So far I received a collections letter from the law firm wanting money for the HELOC.

Some info about me: I live in a state with recourse loans, wage garnishments of up-to 15%. I have a good paying job, the ex is likely not working.

I do not care about my credit at this point. It is totally shot from 1+ years of ex not paying the mort.

What are my options? Am i the sole person on the hook because I have income? Is BK even an option for someone with high salary?

My new husband jokes that we should "divorce" and make me pay him alimony and child support, which would get in front of wage garnishment. The joke started to sound reasonable.

**Evan Bedard** · 09-11-2012, 07:26 AM

What are my options? Am i the sole person on the hook because I have income? Is BK even an option for someone with high salary?

My new husband jokes that we should "divorce" and make me pay him alimony and child support, which would get in front of wage garnishment. The joke started to sound reasonable.

Your ex will be liable as well since he is a borrower on the account and I would recommend contacting a local real estate attorney asap since the foreclosure has already been finalized. You can find legitimate attorneys in your area using the link below. Also you may have the opportunity to settle the account and avoid any possible judgements that may occur from this lien. I recommend searching the forums using the google search bar at the top of the page and type in keywords such as "second mortgage after foreclosure." I'm sure you will find many discussions here that are similar to your situation. What state is the property located in?

National Association of Consumer Advocates | Consumer Protection Advocates and Attorneys - Help for Consumers

**Jdrew** · 09-11-2012, 10:30 AM

I read a bunch since posting this question. TomEason strategy makes good sense to me.
Sold Out Junior Loans

From that it sounds like I can settle myself for 5% and that if i really need to. From credit perspective, I do not. For now I will ignore the 2nd mortgage related correspondance from collector company. It was eye opening to read that they purchassed my loan for 2-5%. Wow, thats cheap.

I live is Mass.

So i understand my ex is "liable", but if someone sued both of us and wage was garnished, his income of zero would be protected and mine (above $2,500 exempt max) is not. Only one person is actually affected - me. However, after reading the strategy thread, it seems like a moot point, no one will be suing for that 15% of my sallary. No one knows where i work, how much I make. I "de-linked-inned" myself recently. I will sell my car if I have to and buy 2 cows (another of my hubby's brilliant ideas), but my car is probably right under $7,500 limit. There is not much else. 401k is within ERISA protection.

I am unclear about the 1st mort. It was secured by property, now the property is taken. Am i liable for it? Same rules apply as 2nd mort?

Before i spend thousands on legal fees i want to educate myself. I have talked to an IRS Enrolled agent/CPA agent a year back about possible 1099 to see if it would be split into 2, my portion and the Ex'. He could not provide me an answer. Wasted $150 on consultation and he was supposed to be good. A good while ago I also contacted an RE atterney, she just pawned me off to his investor buddy to workout a short sale. I couldnt make it work, being a 3rd party. The Ex was not too proactive. That went nowhere. But the information I got from the lawyer was too fluid to feel good. His cut was going to be from legal fees of short sale, that was his business model.

**Jdrew** · 09-11-2012, 10:29 PM

I am divorced and remarried a number of years back. Previous marriage incurred a house that is currently going into foreclosure. My new husband buys a property with his name alone on mortgage and title while we were already married. From creditors of my past life perspective do I have assets?

**Jdrew** · 09-12-2012, 07:25 AM

In the same vein, having a bank account shared with another individual, does that make it untouchable? Or simply exposes the other individual to my creditors? Lets say I owe 10k, have a checking account with my new hubby, he puts in his 10k and i put in a dollar. Both names are on the account. Is a judgement capable of unravelling and siphoning that sum?

**Evan Bedard** · 09-12-2012, 07:31 AM

It will only cost you a couple hundred at most for a consultation from an attorney in the link I provided below, they are very legitimate and I have never heard anyone state they were pushing them to short sale their property to avoid foreclosure. Any good attorney would know that the consequences of a short sale are virtually the same as a foreclosure. However, given the fact you have really no assets they can come after I would assume it would be VERY unlikely for them to pursue a judgement against you. If worst comes to worst and they try to levy your pay there is also the last-ditch option of filing BK to eliminate the debt for good..

**Jdrew** · 09-12-2012, 08:35 AM

Evan, thank you. I will be checking out the attorney you suggested. Paying the right people is not a problem, it is finding them and knowing even what to ask. Between realestate, bankrupsy attorney, CPA, oh and a priest, it was not apparent who needs to be on my team

I know it is very unlikely for creditor to come after me, but If I were them, I would. I have no assets but I do have a near six figure salary. It is not tied to my credit (private sector job). I have no liabilities. Paid off car and student loan a year ago. In theory, they could bleed me for 100k deficiency between 1st (80k) and 2nd (20k). But in essense I would be paying for my ex' rent free lifestyle of past year, year and a half. He can comfortably file a BK, being a true candidate of misery. But it is not as straight forward for me.

Looking forward to any intersting replies on the subject