If two names are on mortgage, if one files for bankruptcy can the other lose the home? 24 Answers as of January 31, 2012
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?Free Case Evaluation by a Local Lawyer!
Enter Zipcode or for Immediate Assistance call (888) 428-7281
Have a general legal question? Click hereAsk a Local Attorney. 100% Anonymous. Free Answers.
Or for Immediate Assistance call (888) 428-7281
Free Case Evaluation by a Local Lawyer: Click here
Twin City Attorneys, P.A. | Amy B. Norberg
As long as your son pays the mortgage, he cannot lose the house. The ex girlfriend's liability goes away with her filing bankruptcy.
Answer Applies to: Minnesota
Replied: 1/31/2012
J.M. Cook, P.A. | J.M. Cook
Probably not. She quit claimed his interest in the home. (I hope he registered the quit claim with the register of deeds). Even if not, the trustee would need to find equity in the home over and above the mortgage and your son's half interest (tough thing in the current economy).
Answer Applies to: North Carolina
Replied: 1/31/2012
McCallum & McCallum | Donald G. McCallum
If the ex has any interest in the house , it passed to the trustee. Obviously, if she has no interest, there is nothing to worry about.There may be an issue about the validity of the document she signed
Answer Applies to: California
Replied: 1/30/2012
Bankruptcy Law office of Bill Rubendall | William M. 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: 1/28/2012
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
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
The Law Offices of Deborah Ann Stencel | Deborah A. 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
Philip R. Boardman, Attorney at Law | Phil Boardman
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
AyerHoffman, LLP | David C. Ayer
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
Carballo Law Offices | Tony E. Carballo
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
Steven Harrell, Attorney at Law | Waymon Steven Harrell
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
Law Office of Lynnmarie A. Johnson | Lynnmarie 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
The Law Office of Darren Aronow, PC | Darren Aronow
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
Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
Not if they keep paying the mortgage.
Answer Applies to: New York
Replied: 1/27/2012
Law Office of Louis S. Haskell | Louis 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: 1/27/2012
Grace Law Offices of John F Geraghty Jr. | 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: 1/27/2012
Ashman Law Office | Glen Edward Ashman
Possibly, depending on what was signed and filed. He should see a lawyer.
Answer Applies to: Georgia
Replied: 1/27/2012
Heupel Law | Kevin Heupel
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: 1/27/2012
Lakelaw - Loop Bankruptcy | David Leibowitz
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: 1/27/2012
Law offices of John P. Brooke | John 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: 1/27/2012
Diefer Law Group, P.C. | Abel Fernandez
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
The Law Offices of Kristy Qiu | Mengjun 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
James Branum Law | James Branum
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
Eliza Ghanooni, Attorney at Law | Eliza Ghanooni
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
