Posted on: 29th Mar, 2007 12:08 am
i own a property with 2 other people one of which has a home equity loan. my ex and i were put on quick claim deed with rights to survivorship with his mother who has home equity loan. i live at the property the other two owners do not. am i responsable for the home equity loan? the loan is only in her name and she had it before the quick claim. if i don\'t make the payments what will happen? could the bank foreclose since i own it also?
Hi Pjluce,
No you are not responsible for the loan. The person whose name is on the loan is responsible for the mortgage payment.
If in any case the lady cannot make the mortgage payment then the lender can take the legal actions like foreclosure against her.
Since, both of you have right to survivorship on the property, which states that after her death the property will transfer into your name. Currently, both of you are not liable for any payment. But she is unable to make payment and then you can save the home by making payment on behalf of her.
Thanks
No you are not responsible for the loan. The person whose name is on the loan is responsible for the mortgage payment.
If in any case the lady cannot make the mortgage payment then the lender can take the legal actions like foreclosure against her.
Since, both of you have right to survivorship on the property, which states that after her death the property will transfer into your name. Currently, both of you are not liable for any payment. But she is unable to make payment and then you can save the home by making payment on behalf of her.
Thanks
"If I don't make the payments what will happen? Could the bank foreclose since I own it also?"
Yes the bank can foreclose if the loan goes into defaults.
By getting the property using a quit claim deed you have not become legally responsible for the loan but you need to continue making the payments or pay it off. If the due payments are not made then you can loose the home.
Yes the bank can foreclose if the loan goes into defaults.
By getting the property using a quit claim deed you have not become legally responsible for the loan but you need to continue making the payments or pay it off. If the due payments are not made then you can loose the home.
The bank can foreclose if the dues are not paid. Legally you aren't responsible at all for the loan. But once the mother is unable to pay for it, it becoems your obligation or else you lose the home.
"I own a property with 2 other people one of which has a home equity loan. My ex and I were put on quick claim deed with rights to survivorship with his mother who has home equity loan. I live at the property the other two owners do not. Am I responsable for the home equity loan? The loan is only in her name and she had it before the quick claim. If I don't make the payments what will happen? Could the bank foreclose since I own it also?"
You can tell her that if bank forecloses because of non payment then her credit will go down as the loan is in her name only. And she should pay it off.
You can tell her that if bank forecloses because of non payment then her credit will go down as the loan is in her name only. And she should pay it off.