Expert: Terry Leeders - 4/25/2009

Question
My mom is divorced but the mortgage and deed to her house are still in both their names. She still lives in the marital home. They were ordered to sell the house and split the proceeds in the divorce proceedings. The house has been up for sale but has not sold. She has been paying the mortgage entirely on her own for 6 years.

He has filed for Chapter 7 bankruptcy. What will happen to the home now? Will she need to refinance? Could it be made to sell in order to alleviate his debt? Could she be made to move out?

Answer
If she wants to keep it, she'll have to continue to pay for the mortgage and remain current.   If the house doesn't sell, and she cannot afford it, she can explore her options in bankruptcy, or letting it foreclose, or trying to get funds from the ex thru the divorce (she can even despite the bankruptcy) since they are both on title to the home.  Consult with her divorce lawyer on the best plan of attack.