Posted on: 15th Jul, 2009 10:50 am
On a loan is the borrower's name always first and co-borrower second? And if lender sues, do they always go after coborrower first?
I do not think so.
Is it happen with you?
Is it happen with you?
each borrower is equivalent. historically, though not a requirement, the borrower with the greater income is the primary borrower and the borrower with lesser income is the secondary borrower.
in the event of a default, a lender doesn't "go after" one or the other; any action is taken against both borrowers.
in the event of a default, a lender doesn't "go after" one or the other; any action is taken against both borrowers.
Ok gmakerley, So let me ask this then, in Pennsylvania, how, if it happens a deficiceny judgemnet carried out? What if I have the means to pay but my partner/cosigner whatever does not... Am i subject to pay all of it or can i sue partner to help pay... does this make sense?
also guys, if lender "goes after" both borrower and coborrower is it naive in thinking i just can tell the lender ok i will pay my half please go after other borrower for the rest?
there's no such thing as "my half" in a jointly-held obligation. when you sign a promissory note, you promise to pay the entire amount due; as does the other borrower. how you handle it is, of course, up to the two of you. that's the second part of the answer.
as for suing a partner to pay his or her portion of a debt - again, since it's between the two of you as to how the debt is paid off, that's something else that's between the two of you.
i've said it before - anyone can sue anyone else for anything at any time. suing someone is not equivalent to being victorious. and yes, if one of you has the means to pay off the judgment but the other does not, then the lender in that case will take the money from wherever it comes. the lender does not care who pays - they just want their money back.
as for suing a partner to pay his or her portion of a debt - again, since it's between the two of you as to how the debt is paid off, that's something else that's between the two of you.
i've said it before - anyone can sue anyone else for anything at any time. suing someone is not equivalent to being victorious. and yes, if one of you has the means to pay off the judgment but the other does not, then the lender in that case will take the money from wherever it comes. the lender does not care who pays - they just want their money back.
That's what i thought.
One last question(s) and i think this was posted before. If a lender sues for a deficiency judgement after a house has been sold in auction is this considered a new debt to each of us, because this would be a new lausuit for (borrower and coborrower)? The reason i ask is this my coborrower just got married, so would her husband now responsible for her part of the new lawsuit?
One last question(s) and i think this was posted before. If a lender sues for a deficiency judgement after a house has been sold in auction is this considered a new debt to each of us, because this would be a new lausuit for (borrower and coborrower)? The reason i ask is this my coborrower just got married, so would her husband now responsible for her part of the new lawsuit?
That's what i thought.
One last question(s) and i think this was posted before. If a lender sues for a deficiency judgement after a house has been sold in auction is this considered a new debt to each of us, because this would be a new lausuit for (borrower and coborrower)? The reason i ask is this my coborrower just got married, so would her husband now responsible for her part of the new lawsuit?
One last question(s) and i think this was posted before. If a lender sues for a deficiency judgement after a house has been sold in auction is this considered a new debt to each of us, because this would be a new lausuit for (borrower and coborrower)? The reason i ask is this my coborrower just got married, so would her husband now responsible for her part of the new lawsuit?
Both the co borrower and main borrower have the same responsibility as the other on the loan.
if a judgment is issued against your coborrower, i don't know of any court that would hold her husband liable for that debt. could it happen somewhere? i suppose so, but if i were in his shoes, i'd fight like mad.
Thanks guys for your help.