Legal Question in Bankruptcy in Massachusetts

I owned a home in CT now I live in MA. When I got divorced at the really bad advice of my lawyer at the time I allowed my abusive ex husband to remain in the home with my name on the mortgage and he was to keep paying for up to 2 years until he could refinance and remove my name. Our divorce agreement was very clear should he stop paying - I was supposed to be able to sell or short sale the house. However my lawyer had me sign the quick claim over immediately which later I found out was very bad. Needless to say he stopped paying and I subsequently went back to court 5 times to sell the house and each judge said - no that I would be rendering him homeless and eventually my credit is destroyed the bank is suing me too and I have 2 kids and no financial stability. What are my options? No one is helping me understand this?

Asked on 6/04/14, 8:25 am

3 Answers from Attorneys

L. Jed Berliner Berliner Law Firm

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Your divorce called for your former spouse to refinance in two years, and you had the right to sell or short sell if he stopped paying the mortgage. Your attorney had you sign over your interest in the former home to your ex, perhaps to make his refinancing easier - except virtually no one can refinance in today's market.

I think your quit claim deed is a red herring. You're on the mortgage with or without your partial home ownership, and it's the unpaid mortgage that is causing you grief. You could not sell or short sell your partial interest.

If you cannot get a divorce judge to compel the sale or short sale by your ex, then you're left with filing your own bankruptcy to get rid of your financial obligation on the unpaid mortgage and to begin improving your credit.

Jed

Jed Berliner, Lawyer

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Answered on 6/04/14, 8:57 am

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Steven Hemingway Grolman LLP

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You have a few options. It would seem that the divorce decree is entirely enforceable, with the right attorney to help you clean it up. However, the damage to your credit is likely there to stay (for the statutory period) as your name is on the mortgage note. Since you are talking about a short sale, I presume you owe more on the home than it is worth. Whether or not that is the case, the judge seems to be blocking you from selling the home.

You may very well benefit from a bankruptcy. Because your name is no longer on the deed, the debt is unsecured as it pertains to you. This would make the mortgage company an unsecured creditor, which would work to your advantage in a bankruptcy proceeding. You should speak to a bankruptcy attorney to see if it would be the right fit. Please feel free to call me at 617-859-8966 or email me at [email protected].

Answered on 6/04/14, 9:35 am

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