July 21st, 2006 by Questions
What happens to a co-signer on a mortgage if the mortgagee goes bankrupt??
July 21, 2006 at 4:20 pm, Barton Goth, GCO Inc. Bankruptcy Trustees said:
This depends on whether the bankrupt continues to make payments on the home or not. In most instances the debtor wants to keep the house, continues to make payments and there is no impact on the co-signer. However, if the debtor ceases making payments prior to bankruptcy and then quits the premises, upon bankruptcy they would be cleared from any shortfall and the co-signer would be required to make payments until the shortfall was paid in full.
Log in to Reply
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.)
You must be logged in to post a comment.