Home Reaffirmed & Non Payment
My question involves bankruptcy in the state of: Kentucky
My ex-husband and I filed bankruptcy June of 2004 and has been discharged. He has continued paying for the home, but he has decided to stop in July of 2009. The house was reaffirmed in the bankruptcy, my question is if he stops paying for the home what happens to our credit and does the mortage company have the right to collect remaining balance?
Re: Home Reaffirmed & Non Payment
Yes, the mortgage co. has a right to any balance due. If he stops making payments, it will have a negative effect on credit.
Re: Home Reaffirmed & Non Payment
I agree with Betty3, well she is correct all the time:p
I would just like to add;
If you lose your home in foreclosure, KY is a deficiency state, meaning;
The lender sells the home, then they come after you for any shortage on the loan. If you owe $150,000 and the home is sold for $80,000 you then owe the lender the shortage of $70,000
Since you have gone through a bankruptcy a foreclosure is not a good idea right now as you can NOT file a bankruptcy again for 8 years after the last bankruptcy. The lender can garnish your pay, checking accounts and whatever else is allowed by state law.
Here is a link to the KY foreclosure laws;
http://stopforeclosure.com/Kentucky_Foreclosure_Law.htm
Re: Home Reaffirmed & Non Payment
Thank you both for the information this has helped me a lot.
Re: Home Reaffirmed & Non Payment
You're welcome from both of us.