Legal Question in Real Estate Law in Colorado

Chapter 7 Divorce Foreclosure 2 mortgages

After having filed chapter 7, which included business debts and some personal, due to his business failing, my husband of 23 years, filed for divorce, leaving me with two mortgages. Total of both 110,000. This doesn't include late fees and attorney fees they are tacking on. Divorce atty says allow foreclose live free til kicked out& save my money to move. Can't sell have no $$ for closing costs, realtor fees, or to bring the loans current before sellng. Total monthly pymt is 1100.00 but the first is only 542.00 at this time. Question: If I were to only make pymts on the first mortgage the second can foreclose & force the sale of my home. Is this correct? When and if they do sell any deficit amount would be discharged since both loans were listed on the bankruptcy and the loan would no longer be considered a secured loan. Right? I was forced to sell a car for less than we owed on it the balance remaining was discharged due to bankruptcy. Have tried to get home refinanced/combine both loans. No one will touch me. My attorney advice was good? Seems like more than one question but all interrelated.


Asked on 5/29/00, 1:31 am

1 Answer from Attorneys
Stanley Spring Stanley A. Spring, Attorney at Law

Re: Chapter 7 Divorce Foreclosure 2 mortgages

It sounds like you've gotten correct advice to date. I haven't done any bankruptcy work in 15 years but I found back in the mid 80's that lenders were willing to work with good faith bankrupts. Check with a credit counselor. You might submit the same question on the bankruptcy list, but subject to the homestead exemption if not waived, you might work someting out with the holder of the first deed of trust

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Answered on 7/17/00, 11:24 am


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