Tuesday, April 23, 2024

Dear Scott,
I am currently divorced and took possession of our home of which I am in the beginning stages of foreclosure. However, even though his name has been removed from the deed, it still remains on the mortgage. Could I file bankruptcy with his name on the loan? If not , what other alternatives do I have to save my home for my children and myself?
--Crystal

Answer
Crystal,
Sorry to hear about your situation. Finances and divorce are always difficult to resolve for the reasons you mentioned.

You can certainly claim bankruptcy and all the loans that you share with you ex will be his responsibility. However, you should consult a bankruptcy attorney in your state about the details concerning your specific situation. Your bankruptcy attorney may also have some legal suggestions for keeping your home.

Financially speaking, you could contact your mortgage company and explain your situation and ask them what you can do to work with them to keep your home. Maybe they can reduce your payments for a year until you're able to pay in full again. Of course, your loan will not be getting paid down, it may even increase, but it's a strategy that may save your home. These situations aren't new to mortgage companies so call them and ask what they can do.

Good luck and please let me know what happens.

Scott 

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