Posted on: 21st Jun, 2009 11:27 am
Hello, I purchased a town home in Florida just about three years ago however shortly after purchasing the market sank and the monthly condo fees doubled leaving me unable to carry the loan on my own so I have been renting it out and moved back in with my then boyfriend in the hopes that the market would increase in 2 to 3 years and I could at least sell it for what I owed and walk away. Of course the market is no better today then it was 3 years ago so I am over and under on the condo, Recently I have married my long time boyfriend and our renters are having a hard time continuining to pay the monthly rental fee which still puts me out aproximately $60 a month. In addition, there are major issues with the unit that the condo is not repairing as quickly as needed that is making the living conditions for my renters inhabital. They have epressed to me that they need out and I know I will not be able to rent the unit to anyone else for the price that I am now without having to pay more out of pocket myself which I can not afford with a child on the way. Also, do you reccomend that we use an attorney and consult a CPA before defaulting to ensure that our current joint assets are not affected?
Any advise you may have will be greatly appreciated, thank you!
Anyways, my question is.... will my now husband that I have shared financial accounts with for the past 8 years credit and or assets be affected if I default on the loan. His name does not appear anyone of the loan paper work or dead for the town home that I am considering defaulting on but we do live in a house together now that he gurantees the loan on but we are both on the deed. In addition we have joint bank accounts that have paid the monthly mortgage payments for the condo for the last 3 years. Although I do not want to default period I may not have a choice but would have more confort in knowing that my family will not be affected other than myself allowing for us to rebuild faster hopefully?
Any advise you may have will be greatly appreciated, thank you!
Anyways, my question is.... will my now husband that I have shared financial accounts with for the past 8 years credit and or assets be affected if I default on the loan. His name does not appear anyone of the loan paper work or dead for the town home that I am considering defaulting on but we do live in a house together now that he gurantees the loan on but we are both on the deed. In addition we have joint bank accounts that have paid the monthly mortgage payments for the condo for the last 3 years. Although I do not want to default period I may not have a choice but would have more confort in knowing that my family will not be affected other than myself allowing for us to rebuild faster hopefully?
Hi wynd,
If your husband's name appears no where on the loan papers, his credit and personal assets should be safe. Your home in which you are currently living should also not be affected, if you default on the mortgage on the town house.
If you default on the town house, it will be foreclosed and sold off to recover the balance amount of the loan. If the proceed from the sale is not enough to satisfy the loan amount, you will be held responsible for the deficiency. In that case, the lender may come after you for the deficient amount and sue you for non-payment. In that case, they may come after the assets jointly held by you. It will be a good decision to consult a lawyer and seek his suggestions on how you can protect your joint assets from the lender.
You can also request your lender to modify your loan, so the monthly payments are reduced and you can afford them. If you are not interested in modifying the loan and are keen on leaving the property, you can go for a deed in lieu of foreclosure.
If your husband's name appears no where on the loan papers, his credit and personal assets should be safe. Your home in which you are currently living should also not be affected, if you default on the mortgage on the town house.
If you default on the town house, it will be foreclosed and sold off to recover the balance amount of the loan. If the proceed from the sale is not enough to satisfy the loan amount, you will be held responsible for the deficiency. In that case, the lender may come after you for the deficient amount and sue you for non-payment. In that case, they may come after the assets jointly held by you. It will be a good decision to consult a lawyer and seek his suggestions on how you can protect your joint assets from the lender.
You can also request your lender to modify your loan, so the monthly payments are reduced and you can afford them. If you are not interested in modifying the loan and are keen on leaving the property, you can go for a deed in lieu of foreclosure.
you can ask your lender for loan modification or Special Forbearance as a firs step.