My ex-wife wants to apply for a HAMP modification because she can't afford the mortgage payments on the marital house, assigned to her by court. She is asking me to sign a quit claim deed, a requirement in the HAMP modification. So, as it is descrived to me my credit score will be hit rather seriously when she stops paying the mortgage to enter the modification... (and take between 6 and 12 months to be repaired) and later on my name will continue to be on the note, making me fully finantialy liable for the debt. My question is.. if she has further problems, can the bank foreclosure my home because my ex- is not paying her modification? If not, what is the worst case scenario? i.e what will the bank (creditor) do if she gets behind in her payments? Will they foreclosure her property or come after my assets?
I take for granted that she will not be able to refinance in the near future, because her income is too low.