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AWidowsFuture · Apr 21, 2007, 07:20 AM

My husband passed away in July 2006. Both of our names are on the deed of the house, but I'm not on either of the mortgages. He was approved for an interest only loan, and the property value has gone down $65,000.00 from purchasing price; and currently his loan balances are $20,000.00 more than the original purchasing price - basically the house is upside-down $85,000.00. I tried to refinance, but my credit isn't good enough to be approved. In addition, the IRS has filed a lien on the house for $35,000.00, for my husband's unpaid taxes. I have been trying to float the mortgages, paying the minimum payment which is all I can afford, for fear that losing the house would wreck my credit. At this point I'm willing to foreclose, because I'm not getting anywhere by holding on to the property. My questions are, is it possible to quit claim off the deed of the house? If so who will the judgement go against? Will I still be held responsible for unpaid property taxes? If I cannot quit claim would it be in my best interest to file bankruptcy? Please help, any information is appreciated. I'm looking for an attorney that will work pro bono, but in the meanwhile, I would really appreciate any insight regarding the matter.

Thank You.

Fr_Chuck · Apr 21, 2007, 08:00 AM

Why would it hurt "your" credit, if you are not listed on any of the mortages, if you are not a co-signer, or if you are not listed on the loan, it is in his name.

While in theory if you are on the deed, and there are unpaid property taxes, they could come after you on that. But how much is the unpaid property tax? It is not the IRS lien that is a different tax. So you owe a few thousand to them after it is all said and done. ( if you owed a lot more than two years taxes they would have sold the house for back taxes by now.

And I don't see how you can file bankrutpcy on debts you don't owe ?
My personal though, on the info you gave us , is walk away, let them foreclose. Then and only then if you find you are liable for any debts that are left you can decide if you need to file bankruptcy or not.

You may see if you have a legal aid society in your area, you will need copies of the IRS lien papers, both mortages, copy of the deed, and a copy of any back taxes owed on the property.