Legal Question in Real Estate Law in California

I got a divorce, a yr later my ex filed chp 7 Bk. and i have been making all payments on the house on time without quitclaim deed only verbal between us.

Now i can no longer afford the payments and can't refin. or modify due to BK. If i walk away from house is this considered forclosure, even if the house has been discharged in ex spouse individual BK on joint loan. Is ex spouse protected from foreclosure and do i now have to wait 7 yrs to rebuy due to foreclosure status or is this already bank owened and i have been making payments for no reason. Mortgage Co says i have no rights and they can not talk to me that it has been discharged through BK and i can walk away. What will my status be??? Just the BK or now foreclosure.? If i quit making payments and walk.


Asked on 4/19/12, 6:04 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Putting together a sensible strategy would require some numbers, such as what is owed on the house, what its current market value is, etc.; also, do you live there and depend upon it for your home. Also, it would be helpful to know more about how the ownership (title) to the house and the responsibility for the mortgage liability were allocated in the divorce decree.

We are getting quite a few questions lately (on LawGuru real estate) regarding problems that seem to arise from the combination of two factors: (1) a divorce settlement that wasn't fully carried out in timely fashion, and (2) a declining real-estate market. Sounds like yours might fall into that category.

As a starting point, you might consider contacting any attorney who (1) participated in the dissolution of marriage (divorce) proceeding, or (2) handled the Chapter 7. You may not get fully satisfactory answers, but, as I say, it's a starting point. You might get some useful info.

I doubt that the mortgage company is giving you the straight story, or if they are, you may be misunderstanding them. No rights? Hmmm, unlikely.

Finally, before the foreclosure and before the walls fall in on you, you should consider having a personal consultation with a lawyer who will counsel and represent you. This is especially important if there is any equity in the house.

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Answered on 4/19/12, 8:37 pm


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