Re: A very foolish friend... Is he screwed?
08-17-2011 08:51 AM
Obviously your friend has big problems. Several things seem wrong here. I doubt a bank would use a house as collateral without signatures from all persons on the title. He needs to see a lawyer for this as it will be complicated and probably expensive.
I think everyone here is assuming that just because she is on title, that she gets half the value of the house. This may vary in different states, but that seems unlikely. There are way too many possibilities here to even guess at the outcome. It is safe to say that some attorneys will be happy that these two were so foolish.
No loan can be taken out on a house without the consent of everyone on the title. At some point in the application process your friend must have signed a document that allowed the loan to be made.
He needs a lawyer to help sort this out, without a doubt.