My ex husband and I took out a 2nd mortgage in 2000. We have since divorced (2002) and the house went into foreclosure from him. I was recently contacted in regards to the balance on the second mortgage and how they were going to collect it. What is the worst case scenario if I don't pay? Won't they just write it off? I am remarried--does this affect him and our new house (in his name?)

If the house is in his name it will not affect the house, but it can affect YOUR credit.

This seems to be a common misconception. Writeoffs have NOTHING to do with your obligation to pay. The loan may have already been written off, but that has no affect on you. As a signer of that loan, you are obligated to pay. The creditor can then get a judgement against you and attech any assets in your name even as a partial owner of the asset..

Just curious: what does your divorce decree/property settlement say about payment of the note secured by the second mortgage?

So my best bet is to take the settlement and pay it?

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Originally Posted by hjkiutyu

So my best bet is to take the settlement and pay it?

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Of what settlement are you describing?