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QUESTION: Getting divorced, plan to title property to ex as part of settlement. Mortaged to the hilt, possibly underwater, esp. if sold at auction.
Ex has home based business and thinks she can keep up. Unlikely to impossible, mtg is 370K.
In line for estate inheritance of ~100K, all other money in qualified plans.
Expect foreclosure in 6 mo to 1 yr.
Estate includes valuable art, being divided with 3 siblings. I have full trust in them.
Unlikely ex could get a re-fi, but an attempt is part of agreement.
What can I do to protect my inheritance in event of foreclosure, auction, and balance left of mortage? Ex has no assets, 2nd marriage, solid pre-nup.
Take art? Irr Trust?
ANSWER: I wouldn't worry too much about it because they very seldom come after a deficiency balance. They will just repo the home and be done with the both of you.
---------- FOLLOW-UP ----------
QUESTION: Thank you for your advise. The mortage company is Wells Fargo and I remember reading somewhere that they were quite aggressive on foreclosures. May the same be true on coming after for the losses? I'm just wondering if you have heard of this.
They are quite aggressive in foreclosing but not in trying to sue for the deficiency balance. The reason is probably because the average deficiency balance would be so large that people couldn't pay it off in their lifetimes thereby costing more than it would benefit. That's just my guess.
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Answers by Expert:
Creditwrench
Expertise
Debt Collections law, Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), federal law, how to properly answer court summons for collection cases, how to prepare federal cases against debt collectors, how to deal with debt collection phone calls.
Experience
I've been an active consumer advocate for more than 40 years and have helped hundreds of people win cases against debt collectors as well as helping them defeat demands for summary judgment lodged against them by banks, debt collectors and defeat mortgage foreclosures and keep their homes.
Education/Credentials
Paralegal courses for the most part.
I have been teaching people how to deal with judgments, mortgage foreclosures and other such problems both on and off the internet for many, many years. I am a Richard Cornforth information provider ever since 2000 and worked with many other organizations and causes since 1980. I was Oklahoma State Chairman for the nationwide drive to defeat the Constitutional Convention which was proposed by various factions within our federal government such as the Council of State Governments and the National Organization of State Governors who were working hard to organize a Constitutional Convention to be held in 1995 for the purpose of rewriting our American Constitution to be more acceptable to the United Nations. I worked with Senator Charles Duke of Colorado and Senator Don Rogers of California and many others across the nation to keep them from getting the number of delegate states required to lawfully hold a Con-Con and we were successful. I have worked with many other legislative issues in Oklahoma and have always been very successful.
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