Divorce wife behind on mortgage

[malabarmike]

I am in the process of getting divorced. My future ex wife has already file for BK and has had her debt wiped out. She wants the house but obviously can't refinance to remove my name from the mortgage. She is $10k behind on the mortgage and has stopped paying the home equity loan in March of 2009. Should I file for BK to avoid being pursued for the second mortgage? I assume she will catch up the primary once the divorce is final.

[chicagoannie]

Do you need to file for any reason other than this house issue? If not, sell the house and end your legal and financial ties to it.

[malabarmike]

The house is probably under water with the 2 mortgages. I am willing to give her the house as long as she releases my retirement. The only reason for me to file would be to be protected from her defaulting on the second as I have about $15k sitting in the bank and another $13k waiting after the divorce. My only other debt is a car loan(not dischargeable) and another loan with 10 payments left.

[biotechsolution]

I'd wouldn't file for the 2nd. If the house is underwater they won't foreclose but if they charge off the loan a collection agency may try to collect. I'd wait to see what happens. If she wants to keep the house she is still responsible for the 2nd so eventually she'll have to deal with it.

[enuffznuff]

are both your names on both loans?

It sounds like basically you're saying that you two had/have a house. She has filed BK at some point. (which, really, leaves only YOU on the hook for both mortgages)

If she's filed BK, they are going to come after you for payment no matter what, because you're the only one left. Deeding the house to her accomplishes nothing as far as your responsibility for the loans. If you have a total of 28K you're going to have in cash, you can't exempt that much in a bk anyway...you just need to sell that house. Or else accept you're going to be paying for her to live in it.

[bulletproof77]

are both your names on both loans?

It sounds like basically you're saying that you two had/have a house. She has filed BK at some point. (which, really, leaves only YOU on the hook for both mortgages)

If she's filed BK, they are going to come after you for payment no matter what, because you're the only one left. Deeding the house to her accomplishes nothing as far as your responsibility for the loans. If you have a total of 28K you're going to have in cash, you can't exempt that much in a bk anyway...you just need to sell that house. Or else accept you're going to be paying for her to live in it.

EXACTLY !! See above..This SAME scenario happened to me. You cannot "quitclaim" your interest off either mortgage. She is "exempted" (for lack of a better term-"protected" ?) from any liability for those mortgages. If you do NOT file BK and include those same mortgages two things will happen. They will go after you for any deficiency in case of a foreclosure. And, they will take the house anyway, she will not get a loan modification or anything like that, fresh out of a BK. My ex got my house, deliberately decided to stop paying, filed BK and had her "mommy" buy her a new house for cash down the street. I had to file BK to get out of any deficiency or collection attempts from the second mortgage. She will be your EX-WIFE for a reason, protect yourself.

[chicagoannie]

I concur with bulletproof77.