Posted on: 16th Feb, 2009 08:52 pm
We have a cabin in NC my husband and I are on the mortgage and loan however his sister is on the mortgage. She is going through a rough time financially and has mentioned bankruptcy. Will this effect us and how? Can her debtors put liens on our property?
Hi Teresak,
Since your husband's sister is on the mortgage, if she defaults, the lender has the right to put lien on the property. I understand how difficult situation she must be facing at a time when the whole world is reeling under the impact of financial meltdown. But there are ways to avoid bankruptcy, while all of them might not be applicable in her situation, some of them could well be.
You can also think of doing a refinance in only you and your husband's name and pay off the existing debt to avoid any negative impact on your credit.
Since your husband's sister is on the mortgage, if she defaults, the lender has the right to put lien on the property. I understand how difficult situation she must be facing at a time when the whole world is reeling under the impact of financial meltdown. But there are ways to avoid bankruptcy, while all of them might not be applicable in her situation, some of them could well be.
You can also think of doing a refinance in only you and your husband's name and pay off the existing debt to avoid any negative impact on your credit.