What happens if mortgage loan holder files for bankruptcy when the title has other people also?

If there are 2 people on the deed of trust and only one on the loan - then the person who has defaulted on the loan will have their credit negatively affected. The one who is only on the deed of trust will lose ownership to the bank or mortgage company, however, their credit will not be affected unless they co-signed or guaranteed the original loan that has defaulted.

First answer by ID1136350801. Last edit by ID1136350801. Question popularity: 5 [recommend question]