Posted on: 27th Jan, 2011 11:52 am
Can a lien be placed on our paid off home if an investment property forecloses? My husband and I went in with our daughter on her home. The mortgage is in all 3 names. She is upside down by about $100K now. Is also anticipating loss of a job, which would necessitate relocating. If she walks from this home, can the mortgage company put a lien on ours?
I am interested on what the answer to this question may be. I believe if you option for a short sale then you should be free and clear unless you start defaulting on your home as well, but don't take my word for it.
Hi veve,
If the three of you are mentioned on the property deed of your free and clear home, then the lender can place a lien on the property in order to recover the deficient balance resulting from the sale of the investment property.
Thanks
If the three of you are mentioned on the property deed of your free and clear home, then the lender can place a lien on the property in order to recover the deficient balance resulting from the sale of the investment property.
Thanks
>>If she walks from this home, can the mortgage company put a lien on ours?
Yes.
Yes.
The answer is maybe and maybe not. But that's a question for an attorney.
My recommendation would be for your daughter to check out http://makinghomeaffordable.gov. There are a number of resources, including HUD approved counselors who can guide her through this.
If she is not going to be able to keep her home, due to the job loss, she most likely will be denied for a HAMP loan modification. The good news to that is that a HAMP denial carries with it an approved HAFA short sale. When she sells her home through HAFA the lender agrees to forego any deficiency judgement.
Whether this applies to you as non-occupant co-borrowers is pretty much uncharted territory, the counselor might be able to help you with that.
Good luck!
My recommendation would be for your daughter to check out http://makinghomeaffordable.gov. There are a number of resources, including HUD approved counselors who can guide her through this.
If she is not going to be able to keep her home, due to the job loss, she most likely will be denied for a HAMP loan modification. The good news to that is that a HAMP denial carries with it an approved HAFA short sale. When she sells her home through HAFA the lender agrees to forego any deficiency judgement.
Whether this applies to you as non-occupant co-borrowers is pretty much uncharted territory, the counselor might be able to help you with that.
Good luck!