I was a co-signer on a second mortgage about three years ago with my soon to be ex-husband, and I ended up getting really tired of this man and I moved out and got my own place and after I moved out of the house he just let the house go and it was forclosed on just recently, will the mortgage company come after me for payment, I am really worried because I really can't afford to be getting my check garnished because I have children to take care of.
2007-10-22 16:31:04 · 4 answers · asked by callmeshelle 2 in Business & Finance ➔ Renting & Real Estate
In all likelihood, none of these answers are true. It completely depends on what state you live in. It is not a foregone conclusion that you are in a recourse state.
A nonrecourse debt or non-recourse debt or nonrecourse loan is a secured loan (debt) that is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable. If the borrower defaults, (you or your ex) the lender/issuer can seize the collateral, but the lender's recovery is limited to the collateral. If the property is insufficient to cover the outstanding loan balance (for example, if real estate prices have dropped), the lender is simply out the difference.
Check to see what the laws are in your state, but be prepared to pay income tax on the deficiency even if you are not held liable for it, the IRS will consider it income.
2007-10-22 19:20:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you co-signed the mortgage, sad to say you will be held responsible for this mortgage, along with your soon-to-be ex-spouse. The lender involved will use as many means as it has at its disposal to collect any shortfall in revenues.
Good luck with your situation.
2007-10-22 16:40:12 · answer #2 · answered by acermill 7 · 3⤊ 0⤋
Get in touch with a lawyer, they have a free 1/2 to 1 hour consultation. Find out how to break off the mortgage now that the marriage is being discontinued. HE needs to pay child support, you need to ask about that too.
2007-10-22 16:37:47 · answer #3 · answered by Elaine M 7 · 0⤊ 2⤋
They will go after anything they can get hold of. If your name is on the mortgage they will go after you.
2007-10-22 16:36:11 · answer #4 · answered by Tisker 5 · 4⤊ 0⤋