I assumed two loans on my FHA home that I bought back in 1993. The house has always only been in my name and I had the house just me and my son for 3 years before I got married and my ex-husband's name never got put on the house. But when we divorced in 2007, I found out that he was entitled to $17,500 in equity at the soonest of one of these things:sell of the house,refinance, or when our daughter turns 18 in 2015. Well, I have applied for disability due to health problems and have had to move in with my parents because cant afford the house anymore but the house is in such poor shape and I cant afford to fix it up for sale, I contacted uglyhouses (homevestors) and they cant help me either because the house has a subsidy recapture on it plus I have to pay my ex $17,500. I don't know what to do because I don't have any money coming in and cant afford to refinance, or fix my house up. I am not sure what will happen if I foreclose. I was told that if I foreclose and don't give my ex $17,500 in equity within 90 days I could go to jail.
Unfortunately, you did not mention the balance of the mortgages, or the present fair market value of the property. The lack of this crucial information makes analyzing your situation difficult.
I am struggling to conceive of a criminal law you would violate if you allowed a foreclosure on your property. I suppose someone could misapply Georgia family law involving the non-compliance of a divorce agreement, but that is a distant stretch of my imagination. If the someone who told you that failing to pay your ex-spouse $17,500 within 90 days of the foreclosure was your attorney, then I would tend to believe such a statement. If the person who told you the 90-day rule is not an attorney, or is an attorney representing your ex-spouse, then the legal advice you received is suspect. Consult with a Georgia attorney to learn more about your rights and liabilities.
You mentioned you live in Georgia. See the Bills.com resource Mortgage Foreclosure Georgia to learn more about the mortgage laws in your state.
See the Bills.com resource Georgia Collection Laws to gain an understanding of your rights in Georgia.
I hope this information helps you Find. Learn & Save.