If two names are on mortgage, if one files for bankruptcy can the other lose the home?
Four years ago my son purchased a home with a girlfriend. In no time (less than 1 yr) she was caught cheating and she left. He did seek legal advice and was told to have her sign a paper that she gives up all interest in the home- he did this. We thought she was out of his life. Yesterday she texted him (we don't know if she was sober) and said he was going to lose his home because she filed for bankruptcy. If two names are on mortgage, if one files for bankruptcy can the other lose the home?
Answered By: Bankruptcy Law office of Bill Rubendall
A co-owned property can be sold by the bankruptcy trustee if there is equity owned by the estate.
Answer Applies to: California
Replied: 1/27/2012
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Answer Applies to: California
Replied: 1/27/2012
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Answered By: Janet A. Lawson Bankruptcy Attorney
If there is equity in the home he needs to see a lawyer now. Otherwise, just keeping paying the mortgage.
Answer Applies to: California
Replied: 1/27/2012
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Answer Applies to: California
Replied: 1/27/2012
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Answered By: The Law Offices of Deborah Ann Stencel
As long as your son remains current on the mortgage payments, he will not lose the home. It sounds to me like she is being vindictive or misunderstood the advice of her attorney. When a person files a bankruptcy, it relieves that person of their eligible debts. In this case, the ex will be relieved of her personal responsibility for the loan. Your son still has personal responsibility for the loan and he is not involved in her bankruptcy. All he has to do is comply with the terms of the mortgage and he will be fine.
Answer Applies to: Wisconsin
Replied: 1/27/2012
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Answer Applies to: Wisconsin
Replied: 1/27/2012
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Answered By: Philip R. Boardman, Attorney at Law
If there is significant equity in the home, a ch. 7 trustee would sell the home only if the she still had a legal or equitable interest in the home. However, he would get paid his half of the equity after the sale. If she signed a quit claim deed more than 2 years ago and has not paid anything on the house since, the trustee could not touch the house.
Answer Applies to: Virginia
Replied: 1/27/2012
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Answer Applies to: Virginia
Replied: 1/27/2012
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Answered By: AyerHoffman, LLP
No. Her bankruptcy will discharge her obligation on the debt, but not your son's. As long as your son is current with the payments there is nothing for him to worry about. Your son should consult with a real estate attorney to ensure all of his interests in the property are protected (ownership, financing, homestead, etc.).
Answer Applies to: Massachusetts
Replied: 1/27/2012
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Answer Applies to: Massachusetts
Replied: 1/27/2012
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Answered By: Carballo Law Offices
The bank cannot take a house if the mortgage is current. The credit report will show the mortgage involved in a bankruptcy case by a joint debtor on the mortgage and the bank will stop sending statements during the bankruptcy but if payments are made regularly then no problem with the house. It will just be an inconvenience for about four months.
Answer Applies to: California
Replied: 1/27/2012
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Answer Applies to: California
Replied: 1/27/2012
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Answered By: Steven Harrell, Attorney at Law
If the girlfriend filed a Chapter 7 case and indicated she was surrendering the home, the creditor will probably move the bankruptcy court for relief from the automatic stay to allow them to start a foreclosure if the mortgage is not paid. As long as your son makes the mortgage payments, though, the loan would not be in default, and the lender will probably not foreclose the home.
Answer Applies to: Georgia
Replied: 1/27/2012
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Answer Applies to: Georgia
Replied: 1/27/2012
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Answered By: Law Office of Lynnmarie A. Johnson
No, she will just be no longer responsible for the mortgage. As long as your son keeps paying the payments, he gets to keep the house.
Answer Applies to: Michigan
Replied: 1/27/2012
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Answer Applies to: Michigan
Replied: 1/27/2012
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Answered By: The Law Office of Darren Aronow, PC
If there is no or little equity in the home, the trustee will not seize the property. The only thing that will change is that when she is discharged, he will be solely liable for that debt.
Answer Applies to: New York
Replied: 1/27/2012
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Answer Applies to: New York
Replied: 1/27/2012
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Answered By: Mauritz Van Niekerk, Attorneys at Law
Not if they keep paying the mortgage.
Answer Applies to: New York
Replied: 1/27/2012
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Answer Applies to: New York
Replied: 1/27/2012
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Answered By: Law Office of Louis S. Haskell
Although there is usually language in the mortgage documents which says that filing bankruptcy constitutes a default on the mortgage, I have never seen a case where a bank has foreclosed on a residential mortgage simply because one, or even all, of the parties declared bankruptcy. As long as the bank is getting its money each month, the bank is happy. I question the bank's ability to enforce this default provision. However, I have never had the need to research that, and would be surprised if you had a problem.
Answer Applies to: Massachusetts
Replied: 1/26/2012
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Answer Applies to: Massachusetts
Replied: 1/26/2012
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Answered By: Grace Law Offices of John F Geraghty Jr.
If she gave him a quit claim deed he should see if he can refinance the loan.
Answer Applies to: Georgia
Replied: 1/26/2012
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Answer Applies to: Georgia
Replied: 1/26/2012
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Answered By: Ashman Law Office
Possibly, depending on what was signed and filed. He should see a lawyer.
Answer Applies to: Georgia
Replied: 1/26/2012
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Answer Applies to: Georgia
Replied: 1/26/2012
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Answered By: Heupel Law
Not necessarily. He can keep the home as long as he is paying the mortgage. If he is doing that, then there is no fear of losing the home.
Answer Applies to: Colorado
Replied: 1/26/2012
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Answer Applies to: Colorado
Replied: 1/26/2012
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Answered By: Lakelaw - Loop Bankruptcy
Yes - the debtor only discharges personal liability. The mortgage on the home still is a lien and the property can be foreclosed if the mortgage note is not paid in accordance with terms.
Answer Applies to: Illinois
Replied: 1/26/2012
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Answer Applies to: Illinois
Replied: 1/26/2012
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Answered By: Law offices of John P. Brooke
More than likely as long as he is current with the mortgage he will be able to keep the house. Even if both parties file for a chapter 7 bankruptcy and discharge the debt there is still a lien on the property and the house can be foreclosed on if the mortgage is not paid. Just tell him to continue to pay the mortgage and he should be fine.
Answer Applies to: New York
Replied: 1/26/2012
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Answer Applies to: New York
Replied: 1/26/2012
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Answered By: Diefer Law Group, P.C.
No. If he continues to pay for the house he can retain the property. He just needs to continue making the mortgage payment.
Answer Applies to: California
Replied: 1/26/2012
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Answer Applies to: California
Replied: 1/26/2012
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Answered By: The Law Offices of Kristy Qiu
No, as long as his payments are current he won't lose his home. Additionally, being on the mortgage isn't indicative of anything, she needs to be on the title as well in order to screw him up and give up interest in the house. Although just to be cautious, I would file an objection to her intend to surrender the property.
Answer Applies to: Florida
Replied: 1/26/2012
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Answer Applies to: Florida
Replied: 1/26/2012
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Answered By: James Branum Law
No, as long as the mortgage payments stay current he will keep the house. The bankruptcy will eliminate the filing debtor's obligation to pay the mortgage but not the obligation of the non-filing co-owner/debtor.
Answer Applies to: Oklahoma
Replied: 1/26/2012
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Answer Applies to: Oklahoma
Replied: 1/26/2012
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Answered By: Eliza Ghanooni, Attorney at Law
Your son will lose the home if he is behind on the mortgage and/or if there is more than $75,000.00 of equity in the home. If there is more than $75,000.00 of equity in the home, then the bankruptcy estate can force a sale of the home to pay of some or all of the girlfriend's creditors. If there is no equity in the home, which there likely isn't becausehe bought the house at the height of the real estate market, and he's current on payments, then he shouldnt lose the home. You should really call a bankruptcy attorney for a consultation just to be sure.
Answer Applies to: California
Replied: 1/26/2012
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 1/26/2012
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
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