Financial Relief Law Center | Mark Alonso
No, if I understand correctly, you co-signed on your sister's home and now you are losing your home to foreclosure. If that is the case, the foreclosure on your own home would not impact your sister's situation on the home you co-signed for her. The only way it may is if you were listed on the title on your sister's home and if your current lender who is foreclosing on your property is able to pursue a deficiency judgment against you. If so, then they can take further actions to recover from you which may include placing a lien against other property/ assets you own. But, if you're a co-signer on her loan and have no ownership in her property, and if the home you own that is being foreclosed upon is not using judicial foreclosure or otherwise cannot pursue a deficiency judgment, then this should not impact your sister.
Answer Applies to: California
Dearbonn Law Offices | Ajibola Oluyemisi Oladapo
Absolutely, your foreclosure will affect a co-signor. A co-signor is essentially pledging to be responsible for your debts if you default. In this case you are foreclosing, so the co-signor is responsible.
Answer Applies to: Washington
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
No, it should not affect her mortgage. You said you co-signed on her mortgage, but I assume you are not on her deed because if so, your foreclosure could result in a lawsuit and that could implicate any asset(s) that you have down the line.
Answer Applies to: Indiana
The Law Offices of Mark Wm. Hofgard, Esq. | Mark Hofgard
If I understand this correctly, you co-signed for your sister's loan and this is not in foreclosure. However, a different property is subject to foreclosure. A creditor may only foreclose on collateral (a property) that is named in the deed of trust. If the second property is not collateral for the loan with your sister, this should not affect your sister.
Answer Applies to: Colorado
The Law Office of Mark J. Markus | Mark Markus
First of all, foreclosure is a creditor remedy. You can't foreclose on your own house. You don't indicate whether or not you are on title to your sister's house, but I will assume you are. The foreclosure on a separate piece of real property will not affect her property. If you file bankruptcy, however, then it may affect her property although there's nowhere near enough information to make that determination here.
Answer Applies to: California
Melinda Murphy Dionne, PC | Melinda Murphy Dionne
The foreclosure on your home( for which your sister is not obligated) should not impact on your sister's ability to continue paying her mortgage. Your details mention a $25,000 gift to your sister when she purchased her home. This gift COULD cause problems for you and/or your sister if you filed a bankruptcy case. You should immediately seek the advise of a qualified bankruptcy attorney who can discuss these matters with you.
Answer Applies to: Alabama