friend is still on the mortgage (Reno: foreclosure, credit, loan)

[passedpfv]

My girlfriend is divorced. Her ex got the house in the property settlement. She took her name off of the deed but the lender would not release her from the loan despite the property settlement by the court. Now it looks like he will let the house go into foreclosure. She is worried that the lender will come after her for the payments and/or if there is a foreclosue, her credit will be blemished. Also, I believe Nevada is a deficiency judgment state. Is it true that the lender could go after her if the house is sold for less than it is worth? Any suggestions would be appreciated!

[Clarks]

If he files for bankruptcy the entire home loan could be put on her.
She needs an attorney, now.

[212david51]

First thing, the person who gains the advantage in doing paperwork should do it. It was to HIS advantage to get her name off the title of the home. He should have done that, not her. In reverse, it was to HER advantage to get her name off the loan so she should have done that. The mortgage company gave the loan based upon both of them being on the mortgage and they are not going to release her at this point in time with him going into default, they are going to come after her. She needs to get a lawyer and get this resolved before the home goes into default.

[Clarks]

Similar story; a friend divorced her husband. He agreed to take all the mutual debt If he also got their car, which seemed like a good thing, her attorney (a Reno attorney) was asleep at the wheel. After a year he declared bankruptcy, the entire debt shifted to her, and he kept the car.