Love this website! I'm hoping to find some more information about PMI subrogation in NV (A Community property State).
I purchased a house in Vegas in 2003. The loan was in my name only, but I added my Wife's name to the deed. The mortgage company didn't complain or ask for a guarantee from her.
I made some bad descisions to help my family by taking out a 2nd on the house (in my name only again). Then I lost my job in Apr 2008. Before I found another job, the foreclosure proceedings had started. I tried for a short sale, but the market in Vegas was so bad, I didn't get it sold before the sheriff's sale. We moved to an apartment.
Both the 1st and 2nd are serviced by CitiMortgage. I thought (incorrectly) that the 1st was taken care of by the Foreclosure sale, so I made a deal with the 2nd to pay 1/2 of the outstanding balance. I'd since found a job and was on track to have the 2nd paid off by EOY 2010. I was hoping to avoid bankruptcy. Great, right?
Nope. Both my wife and I are being sued by Mortgage Guarantee Insurance Corporation, which paid a deficiency claim of $60K on the 1st. I understand them suing me, but my wife? Prior to the foreclosure sale, we'd done a quit-claim to remove her name from the house.
The Causes of action on the suit that apply to my wife are unjust enrichment and quantum meruit. They are trying to claim that - since she received a benefit from the house, she's liable for 1/2 of the deficiency.
At this point, I'm prepared to have the judgments against me or to file bankruptcy. However, My wife's credit shouldn't be affected by this. I'm trying to find some nevada law that would protect her. It's my belief that Mortgage Guarantee is grasping at straws to get money from anywhere. They are soooo desparate, they offered a 20% settlement right out of the gate. Wow.
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...