forclosure after divorce - fl

[kirgreen]

Hi everyone,

I’m so happy I’ve found this site. This has been so informative. I’m in need of some clarity in this situation I’ve found myself in.

Let me give some basic details.

House being foreclosed is in Florida.
Original Loan - Countrywide but sold to Bank of Trustees NY $155k
2nd Mortgage - Bof A $60k (not sure)

My husband (now ex) bought our home and the mortgage was from Countrywide. We had been in a separation at the time, but I came to the closing and signed the papers as necessary. I was told at the time that I wasn’t on the loan, just the deed because we were married. Let me be clear in saying I think I can be a complete moron. The loan never has showed up on my credit so I never believed anything different. Husband and I reconciled but after 6 mos gave I moved out. He filed for divorce Oct 19, 2005. About a week after I moved out. He locked the doors the day I started moving. He moved all money into an account he set up in his name only. He also did a bunch of other things. Water under the bridge. Needless to say I lived off my credit cards as I re-established a home for our son. Okay, a month after he filed for divorce he applied for a 2nd mortgage. I do NOT remember signing for this, and recently got copies of it that have a sketchy version of my signature. But it is Bank of America so I don’t believe they would be involved in anything shady. I typically have an awesome memory and can’t believe I would sign my name to a second mortgage after all he had done. His best friend had advised him to remove all equity in the home in case divorce got nasty. Well, I didn’t have any money so I didn’t get a lawyer. He got it all, house, cars, boats, cash, motorcycles, etc. I was just glad to be gone. Quit claimed deed days before our divorce was final December 20th, 2005.

Flash forward, April of this year, 2009. I get served papers for a foreclosure on the home. Crazy, but I never thought he would do this considering he was so crazy about his bills. I’m listed as a defendant. I call ex and he says, no they are just serving you so you in case you have any interest in the house. I was like, OK. These loans have never been on my credit so I was still in the dark. Called the lawyer that was for the bank over and over, no calls back. I figured everything was fine. (Did I mention I’m very naïve?) Okay, flash forward to last week. Got served with court date and all copies of original, mortgage and note. I get in touch with law office for bank. YEP, you guessed it. I’m on the mortgage, not the note or loan. This makes sense but not. Original note is stamped non recourse by Countrywide.

I currently live in NY. I have 3 children and have remarried. We own our home. My husband lost his job in February and is trying to find a new one. Not easy here in Upstate NY, so he has decided to go to school. I am the only worker. My credit is good, about a 740. Since he lost his job we have been trying for a loan mod from Sovereign Bank. (His job loss, new baby with LOTS of med bills, etc) I have been trying since May 09 but so far it is just a continual series of faxing new docs and waiting.

OKAY, here are my questions and I hope someone can help answer these. I can’t afford a lawyer. Called 2 in Florida last week and I can’t do it. Can’t afford the ridiculous amounts.

1. If 1st loan forecloses will it:
a. Hit my credit?
b. Be turned into a judgment that liens my home (title)
c. And if so, how long do they last on credit/title?
d. And can they garnish wages….this will kill me.

2. Second loan, I haven’t heard anything…yet.
a. This too I’m assuming will hit my credit?
b. Will it also be a judgment/lien?

3. How will any of this affect my modification for my home?

4. I still have credit card debt (about 24k down from 40k from living off them during divorce) I have them in debt repayment at 8% and haven’t touched them in years.
a. Would bankruptcy be an option if this stuff hits my credit and if so what kind of BK would be best for.
i. Getting rid of garnishments/liens etc?


Okay, court date is Oct 16th. I wonder if I should spend the $ to miss work and fly down there so I can attend and if it would even matter. Ignorance of the law is no excuse, right?

Well, thank you in advance for anyone that might respond. I feel like I’m looking inside my home from the outside and everything I’ve worked so hard for is getting stolen. Awful. : (

Thanks,
Kirstie

[jakelabry]

Sorry, but this is all very confusing. "I’m on the mortgage, not the note or loan" does not make any sense. If you have never seen any of this listed on your credit report then you ARE NOT liable. You would not have a 740 credit score with a pending foreclosure. You may be on the title of this property but title is not the same thing as the loan. With your name on the title he would have had to get your signature to borrow any money against it - even if the loan was in his name only. Sounds like he may have forged your signature to get that second loan. Look, say I own a house which I purchased single, then I get married and put my spouse on the title but the loan is my name only - I am the only one liable for that loan/mortgage/note (different words for the same thing). They may be contacting you because they can't reach him - or are getting nowhere with him - and you are on the title. But, again, being on the title is not the same thing as being liable for the mortgage. You really do need legal help. You could probably try to contact the Florida Bar Association to see if they have some sort of pro-bono service or something. Or - call the lender because if you aren't on that note they won't talk to you and you have your answer. Personally, I think you are being conned/scammed because they can't reach your ex and are trying to get to him through you.

[weneedpeace]

You truly need legal aid, and I second what Jake has posted that you need to contact the Florida Bar Association to inquire about pro-bono or free consultation.

It is very likely that you are NOT on the mortgage for the 1st and that they are only contacting you, as you are on title. As for the 2nd, if you have no recollection as to signing this - and things were estranged to begin with - it is probable that he forged.. Many 2nd mortgages are done 'online' with little checks and balances. Were you in the midst of a legal separation agreement when the 2nd was issued? That would be an interesting fact for your case.

I do believe that you are being pulled in, because your ex has not been communicative or accessible. And if you are seeing no mention of either mortgage on your credit report, that is a good thing. Print out a tri-merge report, along with any paperwork associated with your separation or divorce.. and all correspondence from this lender or their attorney.

[kirgreen]

Okay,


I'll definitely take the advice about finding some legal aid, as I'm afraid if I do nothing, I'll find out later I could have prevented all of this. I'm not sure where to go for legal aid but I will search around for more info on that.



I just went through the papers again, (the ones sent with the serving), this is what I have1st mortgage) First twelve pages are labeled "MORTGAGE" and this does have my initials. The last 2 pages are labeled NOTE and only have his. I contacted an attorney on Monday and he did a quick talk with me. He said Mortgage is the promise to pay and hold me liable, the Note is the Loan and the financing. It made sense when he said it. Neither first or second loan are on my credit and I checked on Wednesday (all 3 reports.) You would think if he hasn't paid since Aug 2008 (as per papers served) it would have hit my credit. I also went to the website for the county and downloaded all the copies I could find of everything.


The wording is what scares me: i.e. ....the notice of the lawsuit says xx his named, joined by his spouse, my name, to the lender. It also says the mortgage and note are attached.



Mortgage has this: blah, blah, any Borrower who cosigns this security instrument but does NOT execute the NOTE is (a) cosigns only to mortgage, grant and convey the interest in the property (wordier version) and (b) is not personally obligated to pay the sums secured by this Security Instrument. Is this good news????



I'm pulling copies of the second loan again to see what I can find. I never thought that someone could have done it online. Duh! And yes, it was closed and finalized 1 1/2 months after I moved out and he filed for divorce.


Also, please accept my apology about the misspellings. Ugg. Typing fast. Thank you all for your advice so far.


Kirstie