My husband (boyfriend at the time) & his son (now my stepson) moved in with me about a year ago, as I was due to have his baby in Nov., & we were going to live together as a family. We got married in April of this year. We've kept our finances separate, as I have VERY GOOD credit (the best) & he... well... he does NOT. He's got collection agencies after him & such. Anyway, he had to leave his home that he had been living in just over a year when they came to live with me. He owed more than what it was worth, so he didn't know what to do; other than sign a Contract For Deed with his ex-girlfriend's father (also the grandfather of his son). That was a conflict of interest, I felt. Anyway, there's nothing in this contract that says that my husband should be paying the homeowner's insurance, taxes, ALL utilities & the difference between what this guy can get from the current renters & what is actually owed on the mortgage each month, but the guy actually manipulated my husband into feeling obligated to pay these things for the past year. This is really dragging us down... further & further... paying on two homes. Many personal things have happened to put a wedge in between my husband & his ex's father. Now my husband said that he's seriously considering letting his house go. My questions is/are: If my husband stops paying on all these "extras," & the guy refuses to pay them (He could give my husband the house back, but then we'd just be stuck with even higher payments, so we're in a Catch 22.), & the house goes into foreclosure... Can this affect ME & MY CREDIT? I'm not on the title; however, I AM his WIFE. His name is not on my (our) house. Only my name is. Just a few more facts... Like I said, more money is likely owed on the house than it is worth. Also, the house is in an area of low demand. People who live there don't normally make enough money to make a regular house payment. Any advice would be helpful. We live in Minnesota, if this means anything. Thank you.
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Hi,Originally posted by justasiam73
As long as your name isn't on the mortgage your credit standing will not be affected. So if your husband decides to let the house foreclose it will not impact you. If your husband decides to foreclose on the house, the lien holder will attempt to collect the negative equity. He'll either have to pay it back, or file for BK 7 to prevent collection action against him. Simply not paying the negative equity wouldn't be a wise thing to do.
The only thing you'd want to have an attorney answer is whether or not, any creditors will attempt to collect payment from the equity that you have in the house you own, for the mere fact that you two are now married. The likelyhood of this happening is slim to none, because you haven't been married to long, and certain criterias exist to enable this from occuring. But definately have an experienced local attorney check your state laws regarding this possibility.
Good Luck!
Last edited by HRx; 09-28-2004, 09:00 AM.The information provided is not, and should not be considered legal advice. All information provided is only informational and should be verified by a law practioner whenever possible. When confronted with legal issues contact an experienced attorney in your state who specializes in the area of law most directly called into question by your particular situation. -
Thank you for your help, Todd. Can you answer a couple more questions for me? How long does foreclosure take? What are the differences in the types of bankruptcies that you can file? How long do they stay on your record? 10 yrs? Do you have any other suggestions for us with this second house? We really don't want to foreclose. Those "we buy ugly houses" ads don't seem to work for us. Are you a lawyer/attorney?Comment
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One more thing... Who determines what the house is worth?Comment
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