How can I avoid foreclosure that caused by my ex-husband?
The husband of ten years, whom I shared a child, a house, and a company (almost 20 employee), came home telling me that he had had sex with one married employee and now found “the true love” of his life with another employee and wanted a divorce.
It was 1.5 year ago. My young child and I went through a lot to put our life back together. My ex didn’t fight for custody and pay child support on time. He agreed to transfer the house’s ownership to me.
About company: he pressured (to one point was physically assault me at the company) and successfully kept me out of the company’s management, especially after I had fired his paramours. The company went south and all positive equity (that he agreed with me before) became big negative number. The divorce finalized without a settlement term for the company.
Currently, the bank contacted me about a loan (that I co-signed with him many years ago for the company, using my house as collateral). He is deep in debt and no longer can pay the loan.
I will cut all the drama in the middle when he asked me to PAY HIM if I want to walk out of the company debt free. We agreed that he will sign me off from the company for nothing. He will become only owner of the company and will keep paying that loan. At the same time, I have to keep co-sign the loan so the bank can lower the monthly payment so he can afford to pay it.
Few months passed. Today, I received a letter from a lawyer, request to pay the loan in full or they will start the foreclosure. I guess this is the first one and they will keep mailing for several more before they real foreclosure kicked in. The house has good equity, which means the bank will love to take it.
What should I do to keep the house, or at least stay in the house for another 2-3 years?
Can a short sell will help?
Is there anything I can go to walk away without a damage to my credit score?