Legal Question in Bankruptcy in Virginia

i have been divorced for 3 years. my ex-husband and i could not sell our house in this market. he lived in it but suddenly abandoned the property in july 2010 and stopped making payments. he filed chapter 7 bankruptcy in october 2010. i have not filed nor do i have to file bankrupty. the mortgage company is working with me for a refi and they want a quitclaim deed.

1. does this have to be approved by the bankruptcy court?

2. if the refi falls through because i can't qualify for the stay in your home program with the government, am i fully liable for the entire mortgage?


Asked on 1/17/11, 8:18 am

1 Answer from Attorneys
L. Jed Berliner Berliner Law Firm

You're wrong in thinking that you do not have to file a bankruptcy case. Looking at your second question first, if your mortgage financing is like 98% of everyone else's then you are fully liable for the entire mortgage. This is not true only if you did not sign the Note (which is separate from the Mortgage) or there is some nonrecourse agreement where the lender won't come after you.

As to your first question, you giving a deed to the lender is beyond stupid because you are getting nothing in return (unless you'll get a waiver of deficiency, meaning that you're not liable for the remaining mortgage debt). A deed from you alone is meaningless to the lender, which will also need a deed from your husband. (It can be the same deed signed by both of you.) Your husband needs bankruptcy court approval to do so unless he waits until his case is closed.

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Answered on 1/22/11, 11:09 am


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