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New Member
JeremyL
Posts: 2
Registered: ‎08-24-2012

What happens when someone files BK on a mortgage I consigned on?

Long story short, my name is on a mortgage, but I am not on the dee (quick deeded away).

 

This person has been 60 days late every monthly for almost ayear and a half. They are considering BK.

 

Anyone know how that would  affect me and my credit report? I am in TX if that matters

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Senior Contributor
StartingOver10
Posts: 3,011
Registered: ‎03-06-2010

Re: What happens when someone files BK on a mortgage I consigned on?

Right now you and the co-borrower are both equally liable for the mortgage payment. The bank can come after you for payment or after the co-borrower or both. If, or when, the co-borrower files BK then if they are successfully discharged from their BK the co-borrower will no longer be responsible for the mortgage payment (if he/she has not reaffirmed the debt in the BK).

 

You however will still be responsible for all the payments.

 

The fact that you deeded away the asset has no effect on your liability for the repayment of the mortgage.

 

Get your friend to sell the house if they can't afford it. Then have them file BK. Because once the BK is over, the bank will move to foreclose if the payments aren't made on the mortgage. That f/c will land on your report too. Anything having to do with the loan will be on your credit report because you signed up for the mortgage.

New Member
JeremyL
Posts: 2
Registered: ‎08-24-2012

Re: What happens when someone files BK on a mortgage I consigned on?

Think as for the info.

 

They would definitallyy file 13 due to their income.Unfortunately, I cannot get them to sell. I have tried. So I doubt the property would get forecloseded their less the mortgage company could foreclose on it through me despite it being part of a BK.

 

Any idea how it would show on my CR? I. If in a 13 BK,I will the payment reports get later and later even after in the BK?And will the BK bementioned on my report?

Community Leader
Senior Contributor
StartingOver10
Posts: 3,011
Registered: ‎03-06-2010

Re: What happens when someone files BK on a mortgage I consigned on?


JeremyL wrote:

Think as for the info.

 

They would definitallyy file 13 due to their income.Unfortunately, I cannot get them to sell. I have tried. So I doubt the property would get forecloseded their less the mortgage company could foreclose on it through me despite it being part of a BK.

 

Any idea how it would show on my CR? I. If in a 13 BK,I will the payment reports get later and later even after in the BK?And will the BK bementioned on my report?


If the borrower files BK, the BK notation will show on their report, not on your report - unless you file too.

If the borrower surrenders the house in his/her Ch 13, then the bank will move to foreclose if the payments are not being made on the mortgage.

 

The BK only gives a temporary automatic stay to foreclosure. The very first thing the bank will do is move to have the stay lifted if the borrower(s) are not making payments. That is SOP and easily granted.

 

 


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