Hello:

I recently went to re-finance our (husband and I) mortgage, the title company called and emailed me stating when they went to do the title search a judgement came up against my husband/our house in the amount of $150,000. I have a lot of questions: Please keep in mind the financing for the hous eis 100% in my husband;s name and the deed is in both of our names.

(1) What should we do about our house? We don't have much if any equity in it since we have only been living it in it for a year and a half. Should we sell the house and then buy later on and put the house in my name only?

(2) Should my husband declare bankruptcy? Can a jusgement of that amount be inlcuded in a bankruptcy?

Thank you,

Jen

Is there a judgement against your husband, and/or is there a lien against the house that came from that judgement.

You can not sell the house unless it would pay off both the mortgage and the lien ( if there is one)
If you filed bankruptcy, the bankruptcy court will sell the house give the mortgage company their money first and if there is any money left it would go toward the lien on the house from the judgement.

Or of course you can just walk away from the house, let them foreclose, and when it is over declare bankruptcy on what debts is left.

OR you can just keep paying your current mortgage, keep your house, when you pay off that first mortgage, start paying off the other lien and try to get it all paid off at some point and time and keep your house.

Has your husband told you what the 150,000 dollar debt is from ?

Hi Chuck -

Thank you for the answers.

Yes, the judgement is against my husband and yes I do know now what it is for. Couple of more questions if you do not min:

(1) Does it affect me at all? My credit?
(2) Right now if we were to sell out house we could probably only make about 10-15K more than what we bought it for... who would get paid firth, the judgement or the real esatte agents/attorneys?

Then could we possibly buy a home just in my name if credit approved?

What do you think is the best route to go?

By the way I am seeing two attorneys this week.

Thank you,

Jen

Hi Chuck:

Another question - I just re-read your post... Are we not allowed to sell our home until there is at least $150K in equity? That could take 20 years or more??

$150K is a large amount for a personal judgement. How it affects you depends on what its for.

If you sell the house, first the mortgage lender gets paid,then any other liens.

Hi Scott - Yes, I know it's a lot - unfortunately my husband was involved in an altercation which relted in this large judgement - I believe (do not know for sure) if it's a "civil judgement."

My husband hurt 2 people both physically and mentally back in 2000 - I did not know him then... does this answer your question? Would I be held liable now as his wife as of 2006? I need to know most if not all of the legal ramifications.

Thank you,

Jen

Yes, you can not sell your house until thiere is enough money from the sale to pay off any and all of your current mortgage plus enough money to pay off any liens placed on the home,

So you can not sell the home unless you get a check large enough to pay everyone off.

That is if they filed a lien on the house with the judgement,
That is the reason they place liens on houses, it stops you from selling it, until they can get paid.

No it shouldn't affect your credit.

Hi Chuck:

My apologies... I don't think their is a lien on the house... just a judgement placed against my husband... I'm sorry still confused and trying to understand all the legal terminaology.

Knowing it I just a judgement placed against my husband... can we sell the house?

Jen

Ok, I am sorry, you keep saying judgement against the house,

If there is no "lien" on the house from the judgement, you should be able to sell it.
I would keep "your" part of the profit of the money in a separate bank account in case they hunt up the bank account latter.

Quote:

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Originally Posted by Fr_Chuck

Ok, I am sorry, you keep saying judgement against the house,

If there is no "lien" on the house from the judgement, you should be able to sell it.
I would keep "your" part of the profit of the money in a seperate bank account in case they hunt up the bank account latter.

---

Right - I don't know if we are talking Judgment here OR Judgment and lien. Anyway, in some States selling the property which is held in both names and then moving it into just her bank account or separate bank accounts will not work. Once it's in both hands any attempt to divide it up can be reversed if the judgment holder decides to move against the husband and with this kind of money I would "assume" the judgment holder will make a move.

I'd be interested in the date the Judgment was taken and why the holder hasn't already moved forward - particularly when this is for personal injuries to two people.

A judgment against a person acts as a lien against any property they own. A separate lien does not need to be filed if the judgment has been docketed in the county. If the property is financed or sold then the judgment must be paid at closing or the title company will not issue a title insurance policy.

If the judgment holder is willing to accept less than the full amount of the judgment that's fine, as long as they issue a Satisfaction of Judgment at or prior to the closing.

In this case the only options are: (1) sell or refinance the house for an amount high enough to pay off the mortgage and the judgment; (2) stay there without refinancing until there is enough money and equity to pay off the mortgage and the judgment when selling or refinancing; or (3) speak to a bankruptcy attorney.

Hi Lisa and Judy:

Thanks for the advice - we have already contacted a banruptct attorney. To help answer a few of your questions which may help me here are some answers:

(1) the crime took place in NY state - judgement was placed against my husband in NY back in 07/2005... jusgement against him in NJ was placed on 09/12/2007... does that help at all?

We have only been in our home since January 2007 and married only since November 2006... I am at a loss for owrds as to what I am feeling... I am devastated... and our bankruptcy attorney told me this morning, that this judgement may not be able to be placed in bankruptcy because it is a civil judgement and people were injured?

Please help answer any questions you can, suchas:

(1) Should we just stay in the house... no equity in it right now?
(2) Still file for bankrupty even if the judgement cannot be included?

Jennifer

PS THANK YOU

[QUOTE=jennieb1]Hi Lisa and Judy:

Thanks for the advice - we have already contacted a banruptct attorney. To help answer a few of your questions which may help me here are some answers:

(1) the crime took place in NY state - judgement was placed against my husband in NY back in 07/2005... jusgement against him in NJ was placed on 09/12/2007... does that help at all?

We have only been in our home since January 2007 and married only since November 2006... I am at a loss for owrds as to what I am feeling... I am devastated... and our bankruptcy attorney told me this morning, that this judgement may not be able to be placed in bankruptcy because it is a civil judgement and people were injured?

Please help answer any questions you can, suchas:

(1) Should we just stay in the house... no equity in it right now?
(2) Still file for bankrupty even if the judgement cannot be included?



Jennifer, I know you're upset but only you can decide what is best for you based on financial considerations. If you are contemplating bankruptcy in order to get rid of this Judgment and bankruptcy won't accomplish that - what's the point? I learned long ago to never second guess an Attorney who is in "your" State and knows all the details of "your" situation.

And you are aware that this judgment will follow him - and, by association, you - around until it's paid. Obviously someone cares enough to follow him State to State to enforce it. I trust you are keeping your money separate - ? I hope for your sake...

Did you know about the judgment when you married him? I think when you found out was the time to protect yourself although hindsight is always 20/20.

Hi:

I just found about this judgement on Thursday night when I went to re-finance my house and the underwrite (loan officer) called me at work to explain we could not proceed with the refinance because a judgement appeared on my husband... ( when they went to pull the title)

I had NO IDEA this existed and "no" outr money is not separated.

The bankruptcy attorney has not said much only that she "d9oes not think" this judgement can be included in the bankruptcy. How can we honestly ever pay back this amount plus live?

Am I horrible person to want to leave him? I'm sorry, I don't mean to drag you into this, but I am very nervous?

Jennifer

[QUOTE=jennieb1]Hi:

I just found about this judgement on Thursday night when I went to re-finance my house and the underwrite (loan officer) called me at work to explain we could not proceed with the refinance because a judgement appeared on my husband... ( when they went to pull the title)

I had NO IDEA this existed and "no" outr money is not separated.

The bankruptcy attorney has not said much only that she "d9oes not think" this judgement can be included in the bankruptcy. How can we honestly ever pay back this amount plus live?

Am I horrible person to want to leave him? I'm sorry, I don't mean to drag you into this, but I am very nervous?



Jennifer, this is a legal board and I'm always criticizing people who post personal problems, personal info - that being said here I go, posting personal stuff!

Get your money out of a joint account(s) and into your separate and individual name and do it now. Same with cars, anything like that. Sounds like the house is what it is.

I would feel betrayed - angry and betrayed. I'm sure your husband had his reasons for not telling you - maybe he was afraid you would leave, maybe he is ashamed, maybe he's hiding his head in the sand, maybe he just plain lies for no reason. You just never know why people do what people do.

How the Judgment is phrased MIGHT have some bearing on whether it is dischargeable in bankruptcy - Court-ordered restitution is never dischargeable. Certain civil liabilities (which this seems to be) are never dischargeable. I'd try to pin the Attorney down rather than spend the money on filing and THEN finding out it cannot be discharged.

Do I think you're a horrible person to think of leaving him? Quite the contrary. You're trying to stick it out and do the "right thing" (whatever that is!) as opposed to running for the door. I think you have to decide if you want this debt hanging over his head (not yours, please understand that), possibly forever. If you have children, you will be supporting them if someone moves to collect this Judgment from him. You have to look at those angles. And I hate to ask but apparently this was an altercation with serous injuries? Are you sure you are safe in your marriage?

If you want to do the private email (or whatever it's called) it's OK - I don't have any answers for you but I am a good listener and I think maybe right now that's what you need.

Hi Judy (I hope your name is Judy).

Thank you for the kind response and I apologize for all the typos. I just want to determine what the best "route" is for my husband and I. Do we sell or house or do we not? Does he file bankruptcy or does he not? Hopefully, we find these answers out sooner rather than later.

I really do appreciate your advice both legal and personal, I am upset and I am going through a lot. Thank you and maybe talking in a separate forum would help.

Thank you,

Jennifer

If you sell the house where would you live? I think you need to consult an attorney to advise you whether your house is at risk from the judgement. It may not be.

One thing you didn't answer is why they haven't come after your husband before. Its very possible they really didn't care about monetary damages and aren't going to pursue them. But you need to sit down with your husband and discuss the whole story.

Hi Scott:

They did... the judgemtn was initially entered in NY in 07/2007 then in NJ on 09/12/2007.

We have two attorneys we have already consulted with. We are waiting to hear back from each of them... one is bankruptcy speific and the other specializes in tort law.

We will know more later.

This is all I know as of Thursday evening... I have spoken with my husband and he did not realize a judgement was even filed against him nr was he ever served any paperwork.

Both attorneys are also looking into that

Jen

Im sorry meant to say NY in 07/2005