help with foreclosure in illinois
FORECLOSURE AND DIVORCE?
my ex wife and I have been divorced for 2 years now, in our divorce papers I shall remain in the marital residence and have exclusive occupancy. we are to sell our I am to buy her out with in a 5 year pariod. I am responsible for all payments on the home until the home is sold or she is bought out. I have lost my job and am going into foreclosure. where do I stand legally in this. she will not sign a quick claim deed to save herself. i am at a loss and dont know my rights and cant get legal help anywhere!!!! I live in Illinois, there is NO EQUITY in the home. If we sell tomorrow we stand to still owe up to 40K on the mortgage. I am doing all I can to save the house but dont know if it is possible. I am not sure what she can do to me if it does go into foreclosure since she wont walk away from the problem.
1 – your ex is smart not to sign the quick claim. The quick claim only releases her from bringing a lawsuit against you.
2. She is still on the line credit wise. You defaulted on the loan/mortgage but assumed responsibility. She can take you to court and have you found in contempt (my ex was sent to 4 days in jail for this)
3. She can ask the judge to make sure that you are the one that assumes the deficiency. The bank will send you a 1099-C. You have to claim this on your taxes.
4. Here’s some luck for you. Even though you have to claim the deficiency on your taxes (basically your stating it’s taxable) there is a certain amount you can exempt. Up to 250K can be excluded. So when you go to file your taxes for the next 2 years; take them to a CPA. This exemption is only good for foreclosures through 2012.
My ex had to assume 70K in deficiency on the house. He was suppose to get it out of my name within 90 days of our divorce (which was almost 3 years ago). He never told me that he was late on the payments until 4 months post foreclosure. That is what got him thrown in jail. The judge asked him if he ever called me and gave me the opportunity to assume back the mortgage. He said “No because that would have started a fight with her”. Be smart. Tell the ex everything that is going on and keep records.
Call the bank and talk to their mortgage modification department. You might be able do something. If you can do a short sale; do it. It’s better than a foreclosure showing up.
