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co owner went bankrupt

Posted on: 08th Feb, 2011 11:54 am
I am the primary on the house/loan and the co owner went bankrupt only on the 1st mortgage. My questions are will i have to leave my home even thought I have been making the payments?
was the co owner suppose to include the 2nd mortgage on the home?

Why is the co owners name still on both loans? If I sell would they get profits?

Can I get co owners name off of the loans?
hi melw,

as you haven't filed bankruptcy , you will be liable for paying off the mortgage in full. i don't think you'll lose the property. if the co-owners name is not mentioned on the second loan, then he is not liable for including it in his bankruptcy filing. you can refinance both the loans in your name in order to remove the co-owner from the mortgage.

thanks
Posted on: 08th Feb, 2011 10:52 pm
Posted on: 09th Feb, 2011 08:59 am
Hi Melw,

If you're the sole owner of the property, then you will be able to sell off the property without your partner's signatures. However, if you default the mortgage payments, the lender will not only foreclose the property but it will have a negative affect on your co-borrower's credit report. You can apply for a short sale if you are facing hardship in paying off the mortgage. However, it will depend upon the lender whether or not he will consider your short sale request.

As far as suing the co-borrower is concerned, you will have to speak to an attorney and take his opinion in this matter.
Posted on: 09th Feb, 2011 10:14 pm
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