Legal Question in Bankruptcy in Massachusetts

Help! My Fiance's ex-wife just filed Bankruptcy. They still have two mortgages on a Rental property in NH (we live in MA) with both his and her name on it. We were not able to refinance after the divorce in 2013 because it is an underwater rental property. The Property and mortgages in question 100% belongs to my Fiance per the divorce agreement. We also have a signed/filed Quitclaim deed granting the property 100% to him. We make all mortgage payments on time and have no problems paying the mortgages. My Fiance has had good/excellent credit, until this issue. But now the mortgage companies are listing the mortgages as in bankruptcy. One company even locked us out of online statement/payments and wont even mail us statements. We don't want this to negatively impact our Credit. What can we do to fix this??


Asked on 6/09/15, 2:08 am

1 Answer from Attorneys

Dmitry Lev The Lev Law Firm

It's normal that they will stop sending statements and cancel automatic payments, because when an account is in bankruptcy, any action to collect a payment in any manner may be a violation of the bankruptcy laws. The banks don't know (and don't care) about the divorce agreements, however they will still accept payments from you as long as you initiate the payments and not them (e.g. via an automatic bank draft). Once the bankruptcy is completed, the ex will no longer be liable on the mortgage, but your fiancee will be, and the bank will retain its lien on the property. If the property is no longer underwater, you may approach the bank about refinancing again. If the property is still underwater, you would continue making payments to maintain status quo.

Read more
Answered on 7/19/15, 11:35 am


Related Questions & Answers

More Bankruptcy Law questions and answers in Massachusetts