How can I protect myself from aforeclosure through a divorce?

UPDATED: Aug 6, 2011

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How can I protect myself from aforeclosure through a divorce?

I’m tied to a loan on raw land with my ex-husband. We are divorced and the land was awarded to him. There is a special warranty deed and deed of trust to secure assumption on the property. I am the beneficiary. He is 3 months late, 2 years behind on taxes and the loan we did was a lot loan – 5 year note with a balloon payment due at the end of the 5th year. That payment is due the 18th of this month And I know he has no money nor able to refinance I have cash to pay for the land but how do I go about it to protect myself? If I pay it now the way the papers are filed it is like me paying it off.

Asked on August 6, 2011 Texas


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

You should consult with a real estate/family law attorney after you read my answer. If your former husband cannot pay off the trust deed on the raw land due August 18, 2011, but you can, why don't you consider contacting the person holding the trust deed and buy the trust deed from him or her.

I see no reason why the trustee would not want to sell it to you. Rather than getting a full reconveyance of the trust deed, get an assignment of it into your name. You now own the trust deed. Since you own it and your former husband cannot pay it off, you foreclose upon it and take title to the raw land in your name only wiping out your former husband's ownership interests in it since he cannot pay it off.

Under this scenario, you protect yourself from a foreclosure and end up owning the raw land if your former husband cannot pay off YOUR purchased trust deed.


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