Question : Foreclosure Court Documents Question?
I got the court documents over the weekend – I am in New Jersey – and I have a question.
I am making up my name here. The defendants list says:
“Mary Smith; Mr. Mary Smith Husband of Mary Smith; and XYZ Credit Union”.
XYZ Credit union is the bank that holds a home equity loan against the house that is being foreclosed.
I purchased the house 9 years ago on my own. I lived in it until last year when I lost my job and moved out of state to get a job although it was at a huge pay cut – - after moving out I got married, so my husband never lived in the house or had anything to do with it.

I don’t understand why the 2nd mortgage bank or “Mr. Mary Smith” are named as defendants along with me on the court paperwork.

I don’t want to object to the foreclosure, but I am going to have a HUGE problem with my now-husband being dragged into this mess.
I depleted my 401k account trying to keep current on the house until I could find a buyer – which never happened. I have no savings, I make $ 24k per year less than I did when I bought the house. I live paycheck to paycheck now.
I thought that just letting the house go to foreclosure would let me get a fresh start.
I will be calling lawyers today, but I wanted to ask others for some help or advice.
Thank you,
The house is not in a community property state and I do not currently live in a community property state.
new jersey home equity loan

Best answer:

Answer by Phil
If you live in a community property state your new spouse became half owner of the home and will be named on the paperwork. The credit union is named because they have a second mortgage on the house and it is subordinate to the first. They are going to lose their equity share on the property by this foreclosure.

The credit union will eventually sue you for the amount it loses.