How can I avoid foreclosure that caused by my ex-husband?

[metit]

The husband of ten years, whom I shared a child, a house, and a company (almost 20 employee), came home telling me that he had had sex with one married employee and now found “the true love” of his life with another employee and wanted a divorce.

It was 1.5 year ago. My young child and I went through a lot to put our life back together. My ex didn’t fight for custody and pay child support on time. He agreed to transfer the house’s ownership to me.

About company: he pressured (to one point was physically assault me at the company) and successfully kept me out of the company’s management, especially after I had fired his paramours. The company went south and all positive equity (that he agreed with me before) became big negative number. The divorce finalized without a settlement term for the company.

Currently, the bank contacted me about a loan (that I co-signed with him many years ago for the company, using my house as collateral). He is deep in debt and no longer can pay the loan.

I will cut all the drama in the middle when he asked me to PAY HIM if I want to walk out of the company debt free. We agreed that he will sign me off from the company for nothing. He will become only owner of the company and will keep paying that loan. At the same time, I have to keep co-sign the loan so the bank can lower the monthly payment so he can afford to pay it.

Few months passed. Today, I received a letter from a lawyer, request to pay the loan in full or they will start the foreclosure. I guess this is the first one and they will keep mailing for several more before they real foreclosure kicked in. The house has good equity, which means the bank will love to take it.

What should I do to keep the house, or at least stay in the house for another 2-3 years?

Can a short sell will help?

Is there anything I can go to walk away without a damage to my credit score?

[Purepony]

Hmm laws vary from state to state but you might be able to file bk so you can stay in the house for a longer time ?

 

Also do some online research and find out what the house is worth compared to what you owe.. you might be able to refinance and pay off the loan ?

 

I would start with thy angle

[aileD]

So...do they have a lien on your home for the company loan? I'm having trouble understanding why your house is involved in a company loan.

 

Is your mortgage up to date?

[SoleMate]

These are complex questions; you really need a good divorce lawyer with knowledge of the laws in your jurisdiction. That person should also ask enough questions to get all the relevant facts out on the table. There's no way a person on an advice forum can give any specific useful advice on this. Since a foreclosure appears to be looming, go find a lawyer immediately.

[Simple Logic]

I have no idea who you divorce attorney was, but he is either an idiot or you did not disclose this loan to him during the divorce.

[AnneP]

So...do they have a lien on your home for the company loan? I'm having trouble understanding why your house is involved in a company loan.

 

Is your mortgage up to date?

 

OP said: currently, the bank contacted me about a loan (that I co-signed with him many years ago for the company, using my house as collateral).

 

So yes, her home is collateral for the loan on a company that has gone bankrupt.

[AnneP]

I have no idea who you divorce attorney was, but he is either an idiot or you did not disclose this loan to him during the divorce.

 

I agree.

 

Also don't think bankruptcy would work because laws have changed in recent years that make it more difficult to file. I suppose it's worth a shot, though.

 

OP: please see an attorney about this.