My husband and I are getting a divorce. I am letting him have the house. The trouble with this is he cannot afford to make payments alone. He is going to move out of the house and stop making payments on it. This is going to ruin our credit. I am renting an apartment so I cannot afford to help and need all the money I can get too. He told me that they might garnish our wages if we do not pay. Is this true? Also, I have not gone to a lawyer yet to get the divorce process going. Do I need to hurry up and get my name off of everything in order for me to not be ruined or does that matter?
2007-01-22 11:34:03 · 12 answers · asked by Jessica T 2 in Family & Relationships ➔ Marriage & Divorce
NO matter what happened in the marriage/relationship if you are both on the loan/mortgage you are both equally responsible. Your wages can be garnished even if the home is foreclosed on. It is nice to dream that the bank will make money on the home with the "equity" but the reality is that in a "sheriff" sale or "repo" sale if someone happens to have the inside scoop on the least amount a financial institution will take you can still be held responsible. People don't pay full retail on repos... It's a bargain... The double win for the bank is they can collect a large sum of money on the repo sale immediately because funds have to be available within 24 hours I think so they get a big chunk of cash and can still come after both you and your soon to be ex. Whomever has the more "admirable" possiblity of garnishment.
Your out is to file or request for an extension and put it in the market for sale ASAP. If you have time and the know how do it For Sale By Owner for a short while and then let an agent have it. Hopefully you can get atleast the payoff.
If you have refinanced and tapped out your equity already hold on because you will lose a large portion and in the end the negative balance should be split by you and your soon to be ex. NO one gets burned and no one ruins their credit for ten years.
You can't get your name off of everything unless he refinances without you. Which hey... he may be able to lower the payment and keep the house and then you will have a positive paid out mortgage allowing you the financial freedom to explore your homeowners opportunities on your own...
Ask him to try if it doesn't work... then sell it before you both get burned. Let me know how it goes...
To sell it or refinance would make life after the divorce that much easier and less bitter on either one of you. That way when you go to finance something you won't have to pay 30+% interest... Handle a problem now before it becomes a nightmare.
Good Luck
2007-01-22 12:30:21 · answer #1 · answered by lastepmom 2 · 0⤊ 0⤋
The federal government can garnish wages and so can credit agencies once they get approval from the courts. Usually when you aren't making your house payments the person who holds the title to the house or gave you the loan will forclose on the house. So if it's a bank that you went through you need to go in and talk to them and tell them what's going on and ask what you can do, you can save yourself and get some money back by doing this. It's better to let the bank know you aren't going to be making the payments than just letting it go. If you inform the bank then they can sell the house for you, minus their costs and lost payments, and you can walk away with some dollars in your pocket. Don't let your soon to be exhusband totally screw up your credit. I got this info from my best friend who is a banker at Wells Fargo.
2007-01-22 11:43:08 · answer #2 · answered by Serinity4u2find 6 · 0⤊ 0⤋
Too late to get your name off. In divorce court, the judge will either force the sale of the house and split the remainder if any or assign the house to one. Your house will go into foreclosure proceedings before wage garnishment which never happens. They will retake the house back once the court approves it and sell it for whatever and sue you two for the remainder and that they might be able to garnish. Everything prior to 90 days before divorce filing is marital property subject to divorce laws. Good luck
2007-01-22 11:50:09 · answer #3 · answered by Arthur W 7 · 0⤊ 0⤋
You can't get your name just "taken off", except through the divorce or by refinancing your house and putting it under HIS name.
If you two stop paying, it will affect both of your credit. The garnishing pay issue varies by state. They probably won't garnish wages; they'll just forclose on the house and take it, and then neither of you will get it.
It's great that you're going to let him have the house to make things go smooth, but you both need to continue to pay until you hash things out with a divorce lawyer. Or else you're going to seriously trash your credit.
2007-01-22 11:39:33 · answer #4 · answered by AnswerMom 4 · 0⤊ 0⤋
How companies can claim debt varies from state to state. I have seen circumstances where yes, wages have been garnished to pay debt, where checking and savings accounts have been frozen, and claims were put against future vehicles and other large ticket items paid for (in cash) by the consumer...... Although, if the difference is under 2 grand finance companies usually just hire an annoying collection agency to bug the crap out of you. If you coluld do an early lease termination and NOT a volumtary repossession, it would work far better for you and your credit.....
2016-03-28 21:48:42 · answer #5 · answered by Anonymous · 0⤊ 0⤋
They will foreclose on the house Not garnish your wages! You will lose the home and any equity that it might have in order to cover what is owed. Depending on what state you are in the time of separation is the time that is used for splitting finances. You and (he) should cancel all credit cards, any account that is opened with the two of you and if it was open with just one of you the other neds to have in their files that it is your sole repsonsibility. All Money accounts, Everything! If the house is in both you names, you are going to be affected as much as he is!
2007-01-22 11:40:22 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If you are not sure what to do, then you need to see a lawyer. Plus, they cannot garnish your wages for not making a payment on a house.
2007-01-22 11:41:58 · answer #7 · answered by Anonymous · 0⤊ 0⤋
your wages will be garnishied ,and you will lose thehouse it will affect your incom tax ,One way out , is to go on sick leave or quit your job, try to get fired .you must work out payments ,through the bank ,YOU do not seem to realise the trouble comming y our way you MUST make an effort to PAY in the eyes of the law IF you go on sick leave ,or have an accident at work ,I can help you with some really good info ,ALSO IHOPE your CANADIAN ,THEY WILL EAT YOU ALIVE IF YOU LIVE IN THE u.s.a. My uncle is a top BANKRUPCY lawyer in toronto ,and he has helped people for more than 45yrs ,Trust what I say !!!,I'VE BEEN THERE !!!!,contact me at ,xdrxxx@rogers.com IF you want to survive this.
2007-01-22 12:25:39 · answer #8 · answered by john d 1 · 0⤊ 0⤋
Wha?? Garnish wages? The bank will just foreclose on the house and sell it, keeping all the profits...
2007-01-22 11:36:42 · answer #9 · answered by YDoncha_Blowme 6 · 1⤊ 0⤋
Your wages will be garnished if the mortgage company sues you. Get your name off of things ASAP.
2007-01-22 11:39:05 · answer #10 · answered by Anonymous · 0⤊ 0⤋