I separated from my wife recently (its been like 5 months now) she stopped paying the mortgage and now we are going to default. We should get a notice of auction any month now. She just filed for BK on her own.
My question is what is going to happen to me if I don’t file BK? :smack:
You really need to consult with some BK attorneys in your state. We don’t even know where you are, for starters, and each state has its own set of peculiarities.
Oh, sorry Los Angeles, Ca.
We prefer that real-life legal questions go in IMHO rather than General Questions.
Moved.
samclem, moderator
The foreclosure will damage your credit, assuming you’re still on the loan. You’ll probably lose 100-150 points on your FICO score.
You may or may not be on the hook for any deficiency (assuming the home is underwater) depending on the type of loan (or loans) you have on the home. An original purchase money loan should be fine, a cash out refinance or home equity loan will almost definitely carry a deficiency through foreclosure.
If you do have any liabilities WRT deficiency, you would probably be better off waiting to file for bankruptcy (if it comes to that) until after the foreclosure. Currently the loans are secured and are treated differently than unsecured loans in bankruptcy.
Of course IANAL, IANYL, YMMV, and good luck.
I went trough the same thing. I was able to get rid of the house on a short sale. Still a big hit on the credit score but not as bad as a foreclosure. With the added bonus of I didn’t have the thought of having a house hanging over my head.
Ditto, almost. Trying to short sell now; if it doesn’t sell by December it’ll be foreclosed on.
Does CA do straight bankruptcy or (assuming you and or she are employed) do they do some form of “orderly payment of debts” where you keep paying a reduced amount since you have income?
It seems to me that the OP really needs a divorce lawyer, for starters.
Well thanks guys. It really is as complicated as I thought I will have to seek legal help. I appreciate all your replies.