[CLBS] Creditor Claim question

[Susan R. Wilson]

I am sure this is a common scenario so the answer is probably pretty easy:

I have a an ex-wife with a decree stating the husband has the house and the
responsibility for the loan. Decree says husband is to refinance the house
within a year.  Husband never does that; wife has quitclaimed her interest
to husband per the decree, but is still on the loan.  Husband defaults, bank
forecloses.  During the foreclosure the husband files for Chapter 13 with a
long list of creditors.  There likely will be a significant deficiency
judgment, which the bank will go after ex-wife for.  Can ex-wife recover
from husband?  Technically, wife's claim against husband will not arise
until the bank goes after wife for the deficiency, which we won't know what
is until after the foreclosure sale. Not sure if the bankruptcy will be done
then and I suspect the bank will ask for a stay so they can proceed to
foreclose.  Husband is letting the house go. Wife is not aware of any notice
of trustee's sale - only the notice of default.  She can't afford the house
but also can't afford a $30-$50k deficiency judgment and she doesn't want to
file bankruptcy. . .

Any thoughts?

Susan


Susan R. Wilson
Attorney at Law, PLLC
208 S. Main St. Ste 2
Moscow, ID 83843
sw2 at moscow.com
208-882-8060
866-221-9397 (fx)
 
This electronic communication may contain confidential information belonging
to the sender that is protected by the Electronic Communications Privacy Act
18 U.S.C. Sections 2510 and 2521 and may be legally privileged. This message
and any associated files are intended only for the use of the individual or
entity to which it is addressed and may contain information that is
confidential, subject to copyright or constitutes a trade secret. If you are
not the intended recipient you are hereby notified that any dissemination,
copying or distribution of this message, or the files associated herewith,
is strictly prohibited. If you receive this email in error, please notify
Susan R. Wilson, Attorney at Law, immediately by telephone at 208-882-8060
and destroy the original message.