Ex-in-laws (3rd party creditors) want to foreclose on my condo

[bearishgurl]

Regardless of ANY language on the OP’s MSA, I STILL have a problem with the ex-wife signing the trust deed (along with the OP). Whether the holder of the (belated) trust deed (executed during a “divorce settlement”) is a relative or not is immaterial. In CA, I don’t see how domestic judges can legally absolve a domestic party from a promissory note they signed while married and taking title as joint tenants. Nor can they absolve parties of joint debts secured by filed trust deeds they executed together.

If the OP lets the first TD go into foreclosure, it will affect BOTH their credit reports. If he lets the 2nd TD go into foreclosure, does this (private) bene know how to report this foreclosure to the OP’s credit report?? If they did, they would likely (selectively) NOT, of course report it to their own daughter’s credit report.

frenchlambda, practically speaking, your “equalization stipulation” that you presumably signed the trust deed in exchange for really means nothing if (1) your ex-wife has no assets; (2) your ex wife is not employed or employable; and (3) you are unable to trace the (commingled) downpayment funds as your sole and separate property before a judge. I fear that if you try to collect any of these monies now or later, your ex’s parents will get her a lawyer to fight you in court on the amount. If the court awards you some or all of your 2640 monies, subject to proof, you will STILL have to colllect from her, which could prove to be problematic.

As for your child custody situation, I know you wanted to spend as much time with your daughter as possible and I’m not you but I really believe, based on the child endangerment charge filed against your ex, that you could have gotten at least a 50% timeshare and even moved her to Orange County to live near your job, IMHO. One of you would have gotten at least one weekend per month, half the holidays changing on rotating years and 90% of the summer vacation. I know … “water under the bridge” now (meaning: already done). In any case, you are probably aware that child custody arrangements are changeable thru the court until your child reaches the age of 18.

Domestic courts in CA do NOT favor moms over dads for child custody (not even female judges). They are fully aware that many moms are flaky and do not have the financial wherewithal to keep a stable home for children (even with support coming in).

Based on your posts, the reason I feel your in-laws got involved in your dissolution at the “11th hour” by finally filing a trust deed on your marital property (meaning “at the last minute”) is because they feared their own daughter would lose custody of your child or get limited visitation based on her recent arrest. They wanted to keep you distracted and worried that you wouldn’t have a local home for her so dangled the trust deed carrot in front of you during the proceedings. It worked and your lawyer refused to advise you on it.

I believe your in-laws are fully aware that RE values have fallen and, as a subordinate TD holder, they cannot recover all of their investment on a successful foreclosure and can’t come after either of you for the balance due because it was a “purchase money” loan. Their lawyer told them that. They did not file a TD at the time they executed the promissory note with both of you because it was meant to be a “gift.” The divorce changed everything for them.

This is just my contribution, based upon your posts. Seek advice from a good RE attorney who can advise you on whether that language in your MSA holds any water over your previously jointly executed trust deeds (security instruments) and notes. You always have the option of defaulting on your 1st TD only, affecting your ex’s credit as well. Then your ex-in-laws will be forced to bid the opening bid at the eventual trustees sale to gain ownership of the property, then sell it and recoup some of their loss. If they do nothing and let the property revert back to your 1st TD beneficiary, they will lose their entire investment.

Good luck!!

[bearishgurl]

[quote=frenchlambda]The problem is that at the time of divorce, there was only $10K of equity in the house (appraised value: $340K; balance on the loans: $330K). In other words, pretty much my entire contribution to the down-payment disappeared in the loss of value of the property after 5 years.
All that I got was the right to keep the little of equity in the condo.[/quote]

In essence, what you did here was agree to pay back the $200K (half of which was your ex’s debt) for $10K in “equity.” This is not even enough to pay a RE commission to a broker to sell it!

[bearishgurl]

[quote=frenchlambda]The problem is that at the time of divorce, there was only $10K of equity in the house (appraised value: $340K; balance on the loans: $330K). In other words, pretty much my entire contribution to the down-payment disappeared in the loss of value of the property after 5 years.
All that I got was the right to keep the little of equity in the condo.[/quote]

In essence, what you did here was agree to pay back the $200K (half of which was your ex’s debt) for $10K in “equity.” This is not even enough to pay a RE commission to a broker to sell it!

[bearishgurl]

[quote=frenchlambda]The problem is that at the time of divorce, there was only $10K of equity in the house (appraised value: $340K; balance on the loans: $330K). In other words, pretty much my entire contribution to the down-payment disappeared in the loss of value of the property after 5 years.
All that I got was the right to keep the little of equity in the condo.[/quote]

In essence, what you did here was agree to pay back the $200K (half of which was your ex’s debt) for $10K in “equity.” This is not even enough to pay a RE commission to a broker to sell it!

[bearishgurl]

[quote=frenchlambda]The problem is that at the time of divorce, there was only $10K of equity in the house (appraised value: $340K; balance on the loans: $330K). In other words, pretty much my entire contribution to the down-payment disappeared in the loss of value of the property after 5 years.
All that I got was the right to keep the little of equity in the condo.[/quote]

In essence, what you did here was agree to pay back the $200K (half of which was your ex’s debt) for $10K in “equity.” This is not even enough to pay a RE commission to a broker to sell it!

[bearishgurl]

[quote=frenchlambda]The problem is that at the time of divorce, there was only $10K of equity in the house (appraised value: $340K; balance on the loans: $330K). In other words, pretty much my entire contribution to the down-payment disappeared in the loss of value of the property after 5 years.
All that I got was the right to keep the little of equity in the condo.[/quote]

In essence, what you did here was agree to pay back the $200K (half of which was your ex’s debt) for $10K in “equity.” This is not even enough to pay a RE commission to a broker to sell it!

[bearishgurl]

[quote=frenchlambda]I am going to scan the Promissory Note and the copy of the Deed of Trust if you wish to look more in details. Those are the only document besides the Divorce Agreement part that I already mentioned earlier.[/quote]

If you do this, be sure to redact (black out) the names, addresses, parcel numbers, stamped document number on it and/or send it personally to ucodegen or Eugene. Do not put any personal info on the internet. This is an open forum.

[bearishgurl]

[quote=frenchlambda]I am going to scan the Promissory Note and the copy of the Deed of Trust if you wish to look more in details. Those are the only document besides the Divorce Agreement part that I already mentioned earlier.[/quote]

If you do this, be sure to redact (black out) the names, addresses, parcel numbers, stamped document number on it and/or send it personally to ucodegen or Eugene. Do not put any personal info on the internet. This is an open forum.

[bearishgurl]

[quote=frenchlambda]I am going to scan the Promissory Note and the copy of the Deed of Trust if you wish to look more in details. Those are the only document besides the Divorce Agreement part that I already mentioned earlier.[/quote]

If you do this, be sure to redact (black out) the names, addresses, parcel numbers, stamped document number on it and/or send it personally to ucodegen or Eugene. Do not put any personal info on the internet. This is an open forum.

[bearishgurl]

[quote=frenchlambda]I am going to scan the Promissory Note and the copy of the Deed of Trust if you wish to look more in details. Those are the only document besides the Divorce Agreement part that I already mentioned earlier.[/quote]

If you do this, be sure to redact (black out) the names, addresses, parcel numbers, stamped document number on it and/or send it personally to ucodegen or Eugene. Do not put any personal info on the internet. This is an open forum.

[bearishgurl]

[quote=frenchlambda]I am going to scan the Promissory Note and the copy of the Deed of Trust if you wish to look more in details. Those are the only document besides the Divorce Agreement part that I already mentioned earlier.[/quote]

If you do this, be sure to redact (black out) the names, addresses, parcel numbers, stamped document number on it and/or send it personally to ucodegen or Eugene. Do not put any personal info on the internet. This is an open forum.

[Scarlett]

[quote=bearishgurl][quote=frenchlambda]The problem is that at the time of divorce, there was only $10K of equity in the house (appraised value: $340K; balance on the loans: $330K). In other words, pretty much my entire contribution to the down-payment disappeared in the loss of value of the property after 5 years.
All that I got was the right to keep the little of equity in the condo.[/quote]

In essence, what you did here was agree to pay back the $200K (half of which was your ex’s debt) for $10K in “equity.” This is not even enough to pay a RE commission to a broker to sell it![/quote]

That’s how it seemed to me and doesn’t make any sense at all.

I say, let the condo go to foreclosure. Stop paying them. MUCH better to have a clean slate.

The child is very young, she will adapt easily and she will forget about it.

[Scarlett]

[quote=bearishgurl][quote=frenchlambda]The problem is that at the time of divorce, there was only $10K of equity in the house (appraised value: $340K; balance on the loans: $330K). In other words, pretty much my entire contribution to the down-payment disappeared in the loss of value of the property after 5 years.
All that I got was the right to keep the little of equity in the condo.[/quote]

In essence, what you did here was agree to pay back the $200K (half of which was your ex’s debt) for $10K in “equity.” This is not even enough to pay a RE commission to a broker to sell it![/quote]

That’s how it seemed to me and doesn’t make any sense at all.

I say, let the condo go to foreclosure. Stop paying them. MUCH better to have a clean slate.

The child is very young, she will adapt easily and she will forget about it.

[Scarlett]

[quote=bearishgurl][quote=frenchlambda]The problem is that at the time of divorce, there was only $10K of equity in the house (appraised value: $340K; balance on the loans: $330K). In other words, pretty much my entire contribution to the down-payment disappeared in the loss of value of the property after 5 years.
All that I got was the right to keep the little of equity in the condo.[/quote]

In essence, what you did here was agree to pay back the $200K (half of which was your ex’s debt) for $10K in “equity.” This is not even enough to pay a RE commission to a broker to sell it![/quote]

That’s how it seemed to me and doesn’t make any sense at all.

I say, let the condo go to foreclosure. Stop paying them. MUCH better to have a clean slate.

The child is very young, she will adapt easily and she will forget about it.

[Scarlett]

[quote=bearishgurl][quote=frenchlambda]The problem is that at the time of divorce, there was only $10K of equity in the house (appraised value: $340K; balance on the loans: $330K). In other words, pretty much my entire contribution to the down-payment disappeared in the loss of value of the property after 5 years.
All that I got was the right to keep the little of equity in the condo.[/quote]

In essence, what you did here was agree to pay back the $200K (half of which was your ex’s debt) for $10K in “equity.” This is not even enough to pay a RE commission to a broker to sell it![/quote]

That’s how it seemed to me and doesn’t make any sense at all.

I say, let the condo go to foreclosure. Stop paying them. MUCH better to have a clean slate.

The child is very young, she will adapt easily and she will forget about it.

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