Can second lender force close on my house?

Question

Hubby and I bought a house, both our names on title and mortgage(93k left.)We pay this on time. Few months ago hubby (we separate for many years and going through "agreement" to divorce,)borrowed second mortage from the same lender,(Bank Of America,250k) but without me knowing and singing.(only has hubby's signiture). IF he default on the second mortgage,(most likely because he suddetly lost job and in detb for 300k). What the bank will do to this house? Can the second lender(BOA, too) force close on this house if I keep paying the first mortgage? The house, in this market, may sell for around 370k to 400k? I'm in NH. If you were me, what will you do? (I'm looking for a lawyer, of course. What else?) Thanks all for advice and help. I'd like to stay in this house for as long as I want. I still have kids go to school in the area. It sure made the divorce more complicatred, too. should I sue the lender? If they do their job and the loan person not greddy on commission, I won't be in this mess.

Answer 1

    Your ex-husband likely had a right to mortage his one-half of the property up to the value of the property.

     Yes, the 2nd MTG  (BOA) can foreclose but

only against your ex's 1/2 interest.  

      The bank may not be too pleased by learning that they do not have clear title against which to foreclose. In fact by foreclosing, they may wind up being your "new" partner in the property. If, so they would need go one further step to file a Court action to force your involuntary cooperation in selling the property. Such a lawsuit normally takes years to complete to the knowledge and consternation of your lender.

         Keep paying the First T.D. because you are still liable for that debt. You are not liable for the debt on the 2nd. TD, if you never signed and approved.

          At this point you need a lawyer to confirm this information and relay it to the Mortgage company.

          You can either let your attorney negotiate at a substantial hourly retainer or % OR retain a lesser expensive professional like an accountant or businessperson to conduct your negotiations.

           By your husband' separate action by singularly taking out the new loan, he broke the community property or joint tenancy relationship. You may still own equal shares in the home, but each of you owe separate amounts. He is solely responsible for his debts and you are responsible for your individual or joint debts against real property that you voluntarily assumed and agreed to by a writing.

Take a deep breath.....Relax...

You cannot be personally foreclosed upon a debt that is not your own.  Plan on staying put for quite a while.....        

Answer 2

The nonpayment of the 2nd loan allows the bank to take your house.  The lack of your signature will cause them problems if they do so.  They would have to prove that you agreed to the loan.  In some jurisdictions, a husband can sign for a wife.  That would be unusual on a mortgage because it needs a notary.   Yes, you could sue the bank.  Better to write and phone and email and send certified mail.  Do all 4 and keep proof.  A judge would love to see that evidence that you worked hard to protect yourself./

Answer 3

yes they can but if you live in a dower state then if you did not sign then that note is fraud and then you will need an atty to represent you.