Upcoming Foreclosures

Spouse in Foreclosure - Michigan?

My spouse purchased a home in Michigan before we met/married so I am not on the mortgage or the deed. We rented the house for about a year but have not had success renting it again. We listed the house for sale and are currently working with a Realtor on a short-sale. Her lender has started the foreclosure process, even though they have had a short-sale offer on the table for the past 5 months. After we met (but before we married) I also purchased a home in Michigan. I purchased the home on my own credit and I am the only person on the mortgage. My spouse did "gift" me a small sum of money for the down-payment, but her name is not on the deed or the mortgage. As I understand it, her lender cannot come after my assets or my credit if her house does end up being foreclosed on. Is this true even with the fact that she gifted me a small amount of money for the down-payment? Additionally, it gets confusing to me when I start hearing about joint assets due to marriage. What can her lender consider joint assets and go after? If I leave her name off my bank accounts, etc, will that protect me from any future judgements? If I do buy another house in the future, even if I do it completely in my name, can this be considered joint assets that her lender can go after (since we are now married)? Is there a period of time where her lender can no-longer sue for money that they do not fully reclaim for a foreclosure sale? Are there any steps I need to take to make sure I am protected? Thank you

Public Comments

1. Michigan isn't a community property state, You are correct, you aren't responsible for your wife's debt, nor can her creditors take your assets, As far as her gifting you money? That should be a non issue, unless she were to file bankruptcy in that case, the asset transfer look back rule would be in play,,,