housing

July 28th, 2009 by Questions

Hello,

My husband owns a home in his name which we rent out, and we recently purchased a new home in my name, and my husband co-signed for me for the mortgage. We are having problems with our tenants not paying, and we can`t can`t find anyone else, and we can`t afford paying for these two mortgages. If worst comes to worst and my husband claims bankruptcy and forcloses on the rental property, will this affect my credit and my mortgage since he is the co-signer? (He makes more money then I do. Does this affect me at all, my name is not on the rental property or mortgage?)
Any advice would be greatly appreciated, we don`t want to lose our new home, thank you

Posted from: Ontario

Questions

One Response to “housing”


, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

What you need to do is to contact a local trustee as this is not as simply an issue as it sounds. There is no problem with the rental property being foreclosed and the shortfall being cleared by the filing of a bankruptcy. However, the new house may become an issue. Just because this new house is in your name doesn’t mean that it isn’t related to your husband and as such depending on the amount of equity in the new home it may become an issue. The likelihood it will be an issue is quite small, but it is important to verify in advance.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)