QUESTION
If our coowner of second home is filing bankrupcy what happens to us?
Asked on Jun 01st, 2011 on Bankruptcy - Georgia
More details to this question:
We bought a beach condo with another couple in 2007. They have been unemployed for 2 years and walked away from the condo obligation 5 months ago. We are trying to refinance but are $60,000.00 underwater. Current lender advised us to wait and show proof after 1 year of paying mortgage and refinance under a federal program that you don't have to have an appraisal. Now the other couple may file bankruptcy. How will that affect us?
5 ANSWERS
Litigation Attorney serving Portland, OR
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Daniel G. Hoarfrost
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The co-owner's bankruptcy doesn't really change your position.It just means you can't sue them for contribution.Your position with the mortgage lender is still the same.
Answered on Jun 03rd, 2011 at 11:00 AM
Since there is no equity in the condo, it's likely that there will not be any affect implicating you in their bankruptcy.
Answered on Jun 03rd, 2011 at 9:09 AM
Bankruptcy & Debt Attorney serving San Diego, CA
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Jackie Robert Geller Attorney at Law
If they file for bankruptcy, they will have to disclose their interest in the condo. Technically, the trustee in their case will become your new partner, but if the condo is truly underwater as you say, then probably the trustee will not be interested in selling their interest and the other couple will end up back in control of it. Their bankruptcy will not affect you, but they won't be able to refinance.
Answered on Jun 02nd, 2011 at 12:31 PM
Glen Edward Ashman
See a lawyer immediately. Generally if they go bankrupt you remain liable. Your lender could be trying to screw you and you should not talk to them until you see a lawyer. Under the facts you give, they very possibly are lying to you.
Answered on Jun 02nd, 2011 at 11:51 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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When the co-owner of property is filing bankruptcy it depends on the facts as to what will happen. In this case you state that there is no equity. In that instance your rights in the property will be unaffected after their bankruptcy. There are some other factors as to the property during the bankruptcy. Consult an attorney to discuss rights and obligations.
Answered on Jun 02nd, 2011 at 11:51 AM