Foreclosure Pending - Please review

[got.screwdagain]

What is the name of your state = OHIO

Ok, long-story short. Divorce finalized in 5/13 and ex got the house where she lives with my 2 kids. We are amicable and I want her to remain in the home for as long as possible. However, as the state was taking CS and SS from my pay - I was unable to maintain payments on my mortgage.

My ex has tried sending WF (Wells Fargo) payments only to have them returned and she has tried to work out terms with them. They will not talk to her.

I have retained a lawyer for the purposes of filing BK and reviewed this situation with him and a letter I received regarding the pending foreclosure case. The letter said that I should respond within 30 days. He advised me that there is no defense for not paying and to not respond at all because they will just get a default judgement anyway.

Apart from the fact that I am truly BK and have been for some time - I wanted to file to delay the foreclosure proceeding to buy my ex some time in the home.

So, I'd like some comments on what my lawyer advised. Should I not respond at all? That seems like it would speed-up the proceedings rather than drag it out and give my ex more time in the home.

Are there any steps that I can take to mitigate a bad ending for my ex? She has some money but they won't negotiate. She also has a healthy future income of child-support and 4 yrs of spousal support. This covers the home payments and maybe a bit more.

She is living with a BF in the home and I even wondered about offering to do a short-sale to him. I know it's a weird situation but he's actually a nice guy and I'm on good terms with him too. I initiated the divorce for those wondering - not that it matters - but I left her because I no longer wanted to be married not the other way around. Weird how things work out sometimes.

I don't know that much about foreclosure law - and was really depending on the automatic stay to stop the proceedings and buy her more time. I considered filing CH7 - maybe changing it to CH11 later? Dropping it and re-entering it - anything to drag out the BK proceedings in order to keep her in the house.

If someone might offer other strategies please comment. I know BK trustees don't appreciate being jerked around but I feel like I'm out of other options.

 

[Ohiogal]

What is the name of your state = OHIO

Ok, long-story short. Divorce finalized in 5/13 and ex got the house where she lives with my 2 kids. We are amicable and I want her to remain in the home for as long as possible. However, as the state was taking CS and SS from my pay - I was unable to maintain payments on my mortgage.

My ex has tried sending WF (Wells Fargo) payments only to have them returned and she has tried to work out terms with them. They will not talk to her.

I have retained a lawyer for the purposes of filing BK and reviewed this situation with him and a letter I received regarding the pending foreclosure case. The letter said that I should respond within 30 days. He advised me that there is no defense for not paying and to not respond at all because they will just get a default judgement anyway.

Apart from the fact that I am truly BK and have been for some time - I wanted to file to delay the foreclosure proceeding to buy my ex some time in the home.

So, I'd like some comments on what my lawyer advised. Should I not respond at all? That seems like it would speed-up the proceedings rather than drag it out and give my ex more time in the home.

Are there any steps that I can take to mitigate a bad ending for my ex? She has some money but they won't negotiate. She also has a healthy future income of child-support and 4 yrs of spousal support. This covers the home payments and maybe a bit more.

She is living with a BF in the home and I even wondered about offering to do a short-sale to him. I know it's a weird situation but he's actually a nice guy and I'm on good terms with him too. I initiated the divorce for those wondering - not that it matters - but I left her because I no longer wanted to be married not the other way around. Weird how things work out sometimes.

I don't know that much about foreclosure law - and was really depending on the automatic stay to stop the proceedings and buy her more time. I considered filing CH7 - maybe changing it to CH11 later? Dropping it and re-entering it - anything to drag out the BK proceedings in order to keep her in the house.

If someone might offer other strategies please comment. I know BK trustees don't appreciate being jerked around but I feel like I'm out of other options.

So she is not on the loan but was awarded the house? How far behind are you? What are the monthly mortgage payments???
In what county is the foreclosure? When were you divorced? When she was she awarded the house? Why won't the mortgage company negotiate?

 

[got.screwdagain]

She is not on the loan but is on the title.

The loan is currently about $10K in arrears ($1600 monthly payment)

The home is located in Summit County. We were officially divorced 5/31 and the agreement stated she would retain the home.

I have no clue why the mortgage holder won't negotiate.

 

[Ohiogal]

She is not on the loan but is on the title.

The loan is currently about $10K in arrears ($1600 monthly payment)

The home is located in Summit County. We were officially divorced 5/31 and the agreement stated she would retain the home.

I have no clue why the mortgage holder won't negotiate.

The divorce cannot order the mortgage holder to negotiate. Judges Deszo and Quinn have no power over that. Why hasn't the loan been paid for 10 months? Is the house on the market? What is the income of your ex and her new boyfriend? Those are important factors and if they can refinance -- which they should do -- that might help matters. Especially if they refinance the entire mortgage and you are not ordered to be paid any equity.

 

[got.screwdagain]

The house is not on the market - she wants to continue living there.

Combined income is significantly less than mine - I'd say maybe $50K total but that does not include my support payments (If I understand correctly that cannot be claimed as income).

Can I do anything to influence WF to consider refinancing to them rather than pursuing a foreclosure? Should I contact the WF attorney against my lawyer's advice? What if any does a quit-claim do? My ex thinks this is the key to solving her troubles but I'm unclear that it would help at all.

 

[Ohiogal]

The house is not on the market - she wants to continue living there.

Combined income is significantly less than mine - I'd say maybe $50K total but that does not include my support payments (If I understand correctly that cannot be claimed as income).

Can I do anything to influence WF to consider refinancing to them rather than pursuing a foreclosure? Should I contact the WF attorney against my lawyer's advice? What if any does a quit-claim do? My ex thinks this is the key to solving her troubles but I'm unclear that it would help at all.

A quit claim gives you NO ownership rights in the house and could make it so that the mortgage company calls the note completely due now. Most mortgages have a due upon transfer clause. You cannot do anything to influence WF to reconsider refinancing. And quite frankly if boyfriend and wife have been living in the house and not paying the mortgage? They are deadbeats who have ruined your credit --unless of course you were the one supposed to be paying the mortgage. Why has WF returned your wife's payments? Have you talked to WF about that? Did she put the account number on the check? Did she send the proper amount? How do you know she did that?