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My ex wife and I filed for Chapter 13 a year and half ago mostly due to her maxing out 85k in credit cards. We were divorced shortly after. She got the house but could refinance it in her own name. From day of divorce degree she never paid another house note. Bank filed foreclosure and she also had house on market to sale. She was going to try loan modification in order to keep the house for her and kids but realtor talked her out of it and highly recommended a short sale because we owe more than house is worth.
We also had refinanced house few years. ago to borrow 10k for a surgery she wanted. I keep telling her that we'll have to pay income tax on the 10k plus whatever else went with refinancing. She just freaks out and says I have to sign short sale papers because our divorce papers say I cannot impede sale of the home. She is interested in the 3k relocation expense she will qualify for and could care less about later tax penalties. I dont know if bank will even accept short sale offer but do I have to sign and agree to this as not to impede her sale? Thanks for any help. Confused in illinois You must Login / Register to post a reply.
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I am not sure what the order of court says and what you are required to do but I would consult professionals about what to do and the impact of choices. You always get to choose how you respond to things.
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