I've tried searching online and have not found anything that helps me with my particular situation. I've found stuff similar but didn't exactly answer all of my questions. Therefore, while I know this is something I might want to ask an attorney, I am hoping someone on here might help with at least a little of my questions.
A little background before the questions. My roommate and I have a 502 Direct Mortgage through the USDA. The loan is only a year old so equity is less then $10k. Also, when we closed on the property, we signed a promissary note to repay the closing costs that the seller paid for (unfortunately though, I am pretty sure some shady stuff happened with this note because certain 'requests' were made under the understanding that the sellers wanted this (i.e. interest rates, late fees, etc) only for the note to immediately get transfered to the selling realtor). Also, we are both disabled and draw disability and due to our limited income, we receive section 8 homeowners assistance so HUD pays 40% of our mortgage.
The Questions
- Right now, my roommate is thinking about filing bankruptcy. I would like to know how that would affect our mortgage. Keep in mind we do not wish to discharge the mortgage at all.
- Will it affect our Section 8 at all? Section 8 is not credit based so I would think not, but would like to know for sure and would like some idea about it before I possibly risk things and calling HUD to find out.
- Just as a general ask, does anyone think the promissary note might not be valid based on how it was transfered?
- Does any of the answers differ if we both file? (I might have to file as well due to a clause in the promissary note)
Any help will be very much appreciated.
Thanks
State: WA
