Minnesota forclosure with 2nd

[minnjimm]

I bought my house prior to my Marriage (non-Marital). Purchase Money Mortgage and deed in my name only. Took out a second after marriage but also in my name only.

1st about 170,000, 2nd about 65,000. Tried to do short sale at about 175,000 no offers. Notice from First they are starting Foreclosure proceedings. Have been saving money in bank account in my wife's name only.

I am 66 and work as consultant through own my own S-Corp. Currently on Contract that will probably go through May-June 2013 after which I will be on SS of 2100/mo. Prior income of about 5000/mo with salary and SS. Wife�s income about 2,000/mo retail sales.

Stopped making payments on advice of a realtor friend back in April 2012.

I have been putting about 3500-5000 a month in my wife's savings account through S Corp.

Through the foreclosure proceeding do the lenders have rights to my wife's savings account?, to my S-corp. Assets (cash only and laptop computers)? Would they have right to any 401(k) or profit sharing accounts?

If After foreclosure and I have debts owing from the mortgage and second can I alone file bankruptcy and have them discharged and not have my wife's account touched?

I am trying best way to save the money so my wife will have a small condo in her name after I retire.

 

[Mass_Shyster]

Stopped making payments on advice of a realtor friend back in April 2012.

That was a bad idea.

If After foreclosure and I have debts owing from the mortgage and second can I alone file bankruptcy and have them discharged and not have my wife's account touched?

Nope. The bankruptcy trustee will go after the fraudulent transfers.

 

[minnjimm]

What about putting money in pension/profit sharing

That was a bad idea.



Nope. The bankruptcy trustee will go after the fraudulent transfers.

What about putting money in Profit sharing plan via corporation, hardly fraudulent

 

[Mass_Shyster]

What about putting money in Profit sharing plan via corporation, hardly fraudulent

If you start putting the money in, or increase the amount put in, the trustee will likely deem it to be a fraudulent transfer. Particularly if you use the funds that you were using to pay your mortgage.

 

[LdiJ]

If you start putting the money in, or increase the amount put in, the trustee will likely deem it to be a fraudulent transfer. Particularly if you use the funds that you were using to pay your mortgage.

While I don't disagree with anything that you are saying, everything that you are saying involves a bankruptcy, not the foreclosure.

In the foreclosure nothing can be touched other than the asset being foreclosed upon. After the foreclosure the lender can take steps to attempt to recover some or all of the debt, but those would be separate steps and would depend greatly on whether or not the loan was a recourse loan. Again, unless an actual bankruptcy happens, much of what you posted would be moot.

 

[Mass_Shyster]

While I don't disagree with anything that you are saying, everything that you are saying involves a bankruptcy, not the foreclosure.

That is why I quoted and answered the question regarding bankruptcy in my original post.

 

[nextwife]

I bought my house prior to my Marriage (non-Marital). Purchase Money Mortgage and deed in my name only. Took out a second after marriage but also in my name only.

1st about 170,000, 2nd about 65,000.

So what did you and the wife spend the 65k on, since it was not purchase money funds, and why do you not believe you should repay it, just the same as if you put 65k on a credit card?