Expert: Norma Duenas - California Bankruptcy Attorney - 11/1/2009

Question
I am divorced, in my divorce I was awarded the family home.  The title to the home is only in my name but the mortgage still has my ex-husband's name on it as I haven't been able to get it mortgaged alone yet. I have great credit and a good job now and plan to do that as soon as I can but at the moment I can't.
My ex is in a horrible financial mess and I am worried about what will happen to my mortgage if he files bankrupt.  Can they come after my house?
PLEASE help me figure out what to do, thanks!!!

Answer
There are several options you should look into if you are concerned that your husband will file for bankruptcy and surrender the home in the bankruptcy. First you should check whether you can assume the mortgage. This will depend on the lender. Some lenders allow you to assume the mortgage. This is different then obtaining new financing. Second, generally if you are current on your mortgage and your husband files for bankruptcy, he can specify that he plans to retain the home. If this occurs you should be able to continue to stay in the home and make your monthly mortgage payments. Last if your are not able to obtain financing, or assume the loan and if your husband plans to surrender the property in the bankruptcy, then you should try to talk to the bank directly and explain the situation. They may be able to offer you an option to keep the home, given that foreclosure is a costly process for the bank to go through.