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How will your ex-spouse's bankruptcy affect you if you had a joint mortgage which you are still responsible for?
Wiki User
∙ 9y ago
Since even a quit-claimed mortgage loan continues to show on your personal credit report, it MAY get a notation "included in bankruptcy" (if it was included). This will cause you problems because creditors will be looking at Your public records trying to justify that notation.
Keep track of your credit. Yours is one of the few situations where inserting a consumer statement onto the bureaus would be a good idea.
More input from FAQ Farmers:
- I think it's important to understand that you are talking about two different things: (1) ownership, and (2) liability. Signing a quitclaim deed means you transferred ownership of the property to your ex-spouse, so the deed will only be in your ex-spouse's name, but this in no way transfers your liability on the mortgage document to your ex-spouse. The mortgage lender will still hold you both responsible for the mortgage regardless of whose name is on the deed since both of your names are still on the mortgage document. And, even if the divorce court ordered one spouse to be responsible, in Indiana at least the mortgage lender can normally still sue both spouses if there is a default on the mortgage. I'm only licensed in Indiana, and if you were in Indiana, my guess is that if your ex-spouse filed bankruptcy on the mortgage, the fact that you quitclaimed the house will not stop the mortgage lender from pursuing you for payments. Of course, different things might happen in different states since each state has their own laws on the subject. Please keep in mind that this in no way constitutes legal advice but is just my take on the hypothetical facts.
More information:
Secured debt, such as a mortgage loan, will not be included in the bankruptcy. If the mortgage loan is still in joint names with your ex-spouse, she will remain liable for the debt, and jointly responsible for its repayment.
Wiki User
∙ 9y ago
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How do foreclosures affect your credit?
Same as a bankruptcy There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure.
What happens to a home mortgage if the co-signer does not file bankruptcy but has credit problems?
It will have no affect on the mortgage as long as the lending terms are met by the primary borrower.
If you are about to get married and you are filing Chapter 7 bankruptcy will this bankruptcy affect your spouse in any way after the marriage?
It will only affect the non-filing spouse if the couple apply for some type of joint credit, such as a home mortgage. It will not affect the new spouse's credit report/score.
Will your credit rating be affected by your partner filing bankruptcy?
If your partner files for bankruptcy and you don't then the bankruptcy will not appear on your credit report. But you will be partly responsible for before bankruptcy filing. Generally filing bankruptcy will affect the credit rating of the individual who filed it.
If you are a co-borrower on a mortgage and the other co-borrower has just filed bankruptcy will this affect your credit rating?
Yes. I co-signed for an auto loan and the other borrower filed bankruptcy without notifying me. I was in the process of buying a home and before I went to settlement they pulled my credit again and her bankruptcy came up - preventing me from getting the house. So yes it will affect your credit because it will show up on your credit report that that person has filed for bankruptcy.
How do foreclosures affect your credit?
Same as a bankruptcy There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure.
What happens to a home mortgage if the co-signer does not file bankruptcy but has credit problems?
It will have no affect on the mortgage as long as the lending terms are met by the primary borrower.
How does refinancing a mortgage affect a pending bankruptcy in the state of Missouri?
You can consult a refinancing Mortgage Organization, who would assist you in repayments of debts also would impart the proper knowledge about Mortgage plans.
If you are about to get married and you are filing Chapter 7 bankruptcy will this bankruptcy affect your spouse in any way after the marriage?
It will only affect the non-filing spouse if the couple apply for some type of joint credit, such as a home mortgage. It will not affect the new spouse's credit report/score.
Will your credit rating be affected by your partner filing bankruptcy?
If your partner files for bankruptcy and you don't then the bankruptcy will not appear on your credit report. But you will be partly responsible for before bankruptcy filing. Generally filing bankruptcy will affect the credit rating of the individual who filed it.
Should wife be placed on deed before filing chapter 13 bankruptcy?
You will need to discuss this thoroughly with an experienced bankruptcy lawyer. Mortgages usually do not allow a change in title without the consent of the mortgage holder, and it can trigger acceleration of the mortgage and require immediate poayment of the whole balance due. If the wife has good credit and the mortgage is in trouble, it may affect her ability to borrow after the bankruptcy, so don't do it.
What is the advantage of having you name on deed but not resposible for mortgage?
if you acquired your interest be deed after the mortgage was granted:You are not responsible for the payment of the mortgage and default will not affect your credit record. However, if the mortgagor defaults on the mortgage the bank can take possession of the property by foreclosure and you will lose your interest as well.If you acquired your interest before the mortgage was granted but didn't sign the mortgage:You are not responsible for the payment of the mortgage and default will not affect your credit record. In the case of a default the bank can only foreclose on the half interest of the co-owner who signed the mortgage.
If your fiancee files a chapter 7 bankruptcy and you get married how will that affect you?
It will only become an issue if you apply for joint credit such as a mortgage, vehicle financing, and so forth.
If the owner financier a person not a company holds the mortgage note and he files bankruptcy how does this affect the buyer of the property?
The buyer still owes the money and must pay the debt.
Do you have to pay for a home if you are on the deed?
If your name was added to property after the property was mortgaged then you are not legally responsible for paying the mortgage and a foreclosure of the mortgage will not affect your credit. However, if the mortgage isn't paid the lender will take possession of the property by a foreclosure process.
If you get married during bankruptcy will it affect your new spouse?
The only impact it might have would be relating to future joint financial transactions; for example applying for a mortgage or vehicle loan.
Are the heirs to a property in foreclosure responsible for mortgage?
The estate is responsible for the debts of the deceased. None of the assets can be distributed until the debts have been paid. The bank has a prior lien on the property. The foreclosure of that mortgage will not affect the heirs in any way except to deprive them of inheriting the mortgaged premises. If the heirs wish to maintain that property then they would need to negotiate with the bank and pay off the mortgage. The foreclosure will not affect the credit records of the heirs.
