The Bad News Is Foreclosure

Melissa went through a divorce and is left with a house $100,000 underwater. Her ex-husband refused to sign a quitclaim deed. Melissa stopped making payments. What now?

QUESTION: Melissa in Las Vegas went through a divorce, and the only thing left is a house upside down by about $100,000. Melissa worked on a refinance, but her ex-husband refused to sign a quitclaim deed to allow it to go through. Melissa stopped making payments on it as a result. Dave agrees this was a wise decision on Melissa’s part.

ANSWER: There’s nothing you can do. You’re going to lose the house. You have two choices: pay the payments and live there, knowing that you don’t even own it, or just allow it to be foreclosed.

This is not the bank’s fault. They’ll win in court technically. But they probably won’t come after you. If they do, then you can negotiate some kind of a settlement with them, and during that negotiation, you can certainly bring up the emotion of, “Hey, why don’t you go after him?” You can also bring up that you tried a whole lot of things but were left with no options.

The bad news is you’re going to get foreclosed on. The good news is he’s going to get foreclosed on. There’s not a lot they can do to him from a practical standpoint, but he’s certainly going to have a foreclosure on his record just like you are. And you’ll survive and start again.

Only a psycho shoots himself in the foot to make sure someone else gets a bullet. That’s what he did. I’m sorry. In the midst of all the other emotions you’ve gone through, now you’ve got to move, too. I would live there, though.