What happens to the mortgage/house if the co-borrower files for a Chapter 7 Bankruptcy and is on the Deed as well ?
Coborrower helped with the qulifcation of a mortgage due to high income compared to the primary borrower lower income but Great CreditScore. they had filed for a chapter 7 Bankruptcy and we intend to keep living in the house . Co-borrower is family, comes to visit but doesnt live longterm in the house. The payments for the things needed for a house has always been paid by me. What actions could or would the Mortgage company and the Creditors of the Bankruptcy do?
To keep the house, you must continue to make the mortgage payments. The lender may not allow payments on its website during the bankruptcy. However, you should still be able to pay by phone, check, money order, or electronically initiated through your bank account. Once the bankruptcy is over, the lender will restore access to the account on its website (if access was denied during the case).
Please note this is to be considered general advice and not legal advice about any particular situation. The answering of any question does not...
Since the borrowers are both joint and severably liable. But the person who files for Bankruptcy, their portion of the house is part of the debtors estate in Bankruptcy. You need to retain an experienced MA mortgage foreclosure defense and bankruptcy attorney to guide you through this situation and protect your interests. Another factor is how much equity is in the property. THIS IS NOT LEGAL ADVICE! YOU NEED TO SPEAK TO AN ATTORNEY WHO IS LICENSED IN YOUR STATE FOR LEGAL ADVICE. This is merely suggestions for you to think about in discussing your situation with the local attorney.
If you found this Answer helpful, please mark it as "Best Answer" Please be advised that the answer above is only general in nature cannot be construed as legal advice, given that not enough facts are known. It is your responsibility to retain a lawyer to analyze the facts specific to your particular situation in order to give you specific advice. Specific answers will require cognizance of all pertinent facts about your case. Any answers offered on Avvo are of a general nature only, and are not meant to create an attorney-client relationship.
