Legal Question in Bankruptcy in Texas

while married in texas, my ex and i purchased two rental properties, one in texas and the other a house in south carolina. he is over 70 and retired, I work and earn $100K/hr so all the mortgages were in my name only. after the divorce, i was awarded our primary residence and a rental house in tx which i sold and paid off my deb. he was awarded the house and our joint savings, IRA and 401 totallying approx $200K. he was to refinance the house or sell it within nine months. he is in frail health, so his son and his family are living in the same house . his daughter in law fraudently emptied out my ex and his son's bank accounts as a result neither have any money for the refi. worse, the mortgage is upside down, the mortgage balance is $130k and the realty value is $112K, neither have the money to make up the difference. we are struggling because he and the son wants to remain in the house and i want out of the mortgage and we are not able to come up with a satisfactory solution.

Similar houses on the street that have been foreclosed are selling in the range of $60 - $80K.

My question:

if the title is in his name and the mortgage is in my name, and the mortgage goes unpaid, what can the bank do to me financially? will i have to file for bankruptcy and will I lose my remaining savings? thank you in advance


Asked on 12/11/11, 10:02 am

1 Answer from Attorneys
Mark Dunn Mark D. Dunn

If the mortgage is in your name, then you are still personally liable for paying it. The bank has the right to foreclose on the house, and could come after you for the "repossession deficiency."

My guess is that you don't qualify for bankruptcy.

Read your divorce decrree very carefully. It is very common to have a provision in a decree that requires someone to refinance a house, and a good lawyer will draft it so that all of the "what ifs" are covered.

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Answered on 12/11/11, 12:05 pm


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