Beginning of Foreclosure and Divorce
I live in Colorado. My home is about to go into foreclosure and there is no way I can stop that. My wife left over 3 months ago and I am soon to file a dissolution of marriage. When we bought the house my lender told me my wife could not be on the mortgage loan since at that time she had no employment or income but she will have to be present at closing to sign the deed. Please note that we are common law married (filed taxes together, cohabitated, and presented ourselves as husband and wife, legal in CO). I have no equity in the home and I believe there will be debt after the foreclosure sale, (same floorplan/house, in better condition, is for sale around the corner for $12,000 less than what I owe and has been for about a year).
My question is. Will she be liable for any of the debt after foreclosure or do I pay everything since only my name is on the loan?
Re: Beginning of foreclosure and divorce
As far as the bank is concerned, it's all you.
You may be able to recover part of the money through the divorce action, but the mortgage lender's rights and remedies are not affected by your divorce.
Re: Beginning of foreclosure and divorce
Even if she is on the deed?
Re: Beginning of foreclosure and divorce
The debt is from the mortgage, not the deed.
Re: Beginning of foreclosure and divorce
Son of a...
That sucks.
Thank you for the info.
Re: Beginning of foreclosure and divorce
Ok, so if my understanding is correct. In the event there was equity in the house she would be entitled to half, but not half of the debt if the house is foreclosed?
Re: Beginning of foreclosure and divorce
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Quoting
idunno
Ok, so if my understanding is correct. In the event there was equity in the house she would be entitled to half, but not half of the debt if the house is foreclosed?
Nobody said anything like that.
Re: Beginning of Foreclosure and Divorce
Quote:
Ok, so if my understanding is correct. In the event there was equity in the house she would be entitled to half, but not half of the debt if the house is foreclosed?
Just my assumption from other threads I have read.