With his name being the only name on the mortgage, then when he files bankruptcy and presumably discharges the mortgage, the lender can begin foreclosure proceedings. This is not to say they will
, but they can
. As long as the payments are current and they continue to get payments each month, they may
not foreclose though. They will likely stop sending statements and payment books though, so you will need to be sure and send in payments of your own volition.
I don't know what your relationship is like with your ex-husband now, but if he reaffirms the debt on the mortgage then you would not have to worry about them foreclosing. But, his lawyer will likely advise him not to reaffirm since that would put him at risk in the event you default. But, if he and you are reasonably certain you can keep the payments up, and your relationship is one in which he would be willing to do it, then this would be one option.
Another option is for you to refinance. I know you said this isn't likely, but I thought it should be on the list.
You may also get the bank to transfer the mortgage to you (called assignment). I don't think this is incredibly likely, but it is possible that the bank would assign the mortgage from him to you since you owing them is better than no one after he files bankruptcy, and most banks don't want another foreclosed house at this point.
Finally, if all else fails, you can possibly
file a Chapter 13
yourself and keep the home. Chapter 13 normally allows one to protect all assets which are part of the bankruptcy estate, which basically means all of the property owned by the debtor filing bankruptcy. 11 U.S.C. 541 (HERE
) says what property constitutes the bankruptcy estate, and it is very broad. Certainly real estate with your name on it would qualify.
So, the bank will argue that they are not subject to your Chapter 13 since they are not a creditor of yours, and you will argue that you are allowed to cure any default according to 11 U.S.C. 1322(b)(3) (HERE
) or whatever other argument your lawyer can cook up, then hopefully the case law in your jurisdiction will allow you to protect the home at least while the Chapter 13 is pending. This would give you up to 5 years to refinance (during which time you would still need to keep mortgage payments current though). Again, this approach may be utterly dependent on case law in your jurisdiction, so if no other method works, you might want to see a bankruptcy attorney to see if Chapter 13 will work in your district.
I wish I had better news but that's it without a functioning crystal ball...
My hope is that the bank continues to accept payments from you after he files bankruptcy, and eventually you can refinance it and pay it off.
Good luck and let me know if you have any more questions!
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