answersLogoWhite

Top Answer
User Avatar
Wiki User
Answered 2007-01-11 14:26:13

It will have no affect on the mortgage as long as the lending terms are met by the primary borrower.

001
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0
User Avatar

Your Answer

Still Have Questions?

Related Questions

What happens to a mortgage after a bankruptcy?

What happens to a mortgage after bankruptcy depends on whether or not the debt is reaffirmed. If the mortgage is reaffirmed the homeowner continues to pay it as if the bankruptcy had not been filed, since the debt has not been discharged. If the debt is not reaffirmed, what happens to the mortgage depends on the policies of the individual lender.


What happens when a loan is cosigned and the borrowers file bankruptcy but the cosigner is deceased?

The loan would be part of the bankruptcy filing. I can't see how the death of the cosigner is significant. (In financial terms, that is.)


What happens when a cosigner declares bankruptcy-not the primary owner?

Nothing unless they filed on your loan.


What happens to you when ex wife files bankruptcy on 2nd mortgage both your names are on?

Her mortgage liability will be discharged.


What happens to the cosigner if you are in chp 7 bankruptcy and you default on your car loan?

If you default on your loan, the cosigner is stuck with paying it off. If your credit had been any good in the first place, you would not have needed a cosigner.


What happens to a reverse mortgage in bankruptcy?

A reverse mortgage is typically unaffected by bankruptcy. Only in a case where you want to surrender the home would the bankruptcy court be involved on any mortgage product other than to dictate terms of repayment of defaulted payments. with a reverse mortgage there are no payments so that would not be an issue.


What happens to a cosigner of a car loan when the primary loan holder files bankruptcy and the loan is discharged and they do a voluntary repossession?

They can still come after the cosigner, and it will still reflect poorly on your cosigner's credit history. You have been absolved of the debt, not your cosigner.


If you are a cosigner on a vehicle and the other person gets the vehicle repossessed then files for bancruptcy what happens to the cosigner?

you are still liable for that loan. the lender may decide to not accept the bankruptcy charge and go after you for the money.


What happens when someone you cosigned a mortgage for has filed for bankruptcy?

When you co-sign on a loan or mortgage for someone, you are promising to make the loan payments if they can't. When someone files for bankruptcy, they are claiming that they cannot make their payments. It would stand to reason that if someone you co-signed on a mortgage for files for bankruptcy that you would then be liable for making the payments.


You are a cosigner and the debtor has filed chapter 13 what happens to your obligation?

You are protected during the term of his bankruptcy. If he does not resolve the debt under it, you will remain responsible.


What happens to the mortgagee if he files voluntary bankruptcy?

Assuming this is a straight bankruptcy, the mortgagee would lose the money that is owed to it on the mortgage loan. A bankrupt person or corporation loses all of his/her/ its assets to the Trustee in Bankruptcy so that the Trustee can liquidate those assets and distribute the net proceeds to the creditors. The mortgage loan is an asset which is then sold to the highest bidder along with the mortgage lien. The mortgage holder will now make the mortgage payments to whoever purchased the mortgage loan from the bankrupt estate. The mortgagee is left with nothing.


What happens to a mortgage note when the mortgage company files for bankruptcy?

Mortgage notes are considered a company asset and are transferred or sold to other servicing lenders. Most mortgage companies only service loans for investors "fannie mae, Freddie Mac, etc."


What happens when the second home is placed in bankruptcy by mistake and is not your primary residence?

what happens when you file bankruptcy and your second home you own as an investment is placed in the bankruptcy by mistake the house getsfor closed on and sold but no title search is done to see that there are actually two mortgages on the house who is responsible for the second mortgage


What happens to your cosigner if the borrower defaults on private loans?

The creditor wil try to get the debt from the cosigner as well.


What happens to charged off debt in chapter 7 bankruptcy if you refinance mortgage?

This confuses two different concepts. A "charge off" is an accounting and tax term that means the creditor does not believe a debt is going to be repaid. It gives the lender a tax deduction. A discharge in bankruptcy is a permanent injunction against a creditor taking any action to collect a debt, including debt collection agencies or successors/purchasers of a discharged debt. Assuming the refi of the mortgage happens after discharge, nothing happens. If the refi happens while a c 7 or 13 is still pending, and lowers the mortgage payment, and has been approved by the bankruptcy court, it could affect how much you have to pay to the trustee.


What happens to your mothers mortgage if she dies and you are her cosigner but not on the deed?

The short answer is, nothing good. As a co-signer, you are still responsible for making sure the mortgage payments are made in full on time. However, you should talk to the bank that holds the mortgage to see what you need to do, particularly if the title of the house doesn't come to you through the will or settling of the estate.


What happens to the tenant in the rental home when the homeowner files bankruptcy?

Bankruptcy has nothing to do with the tenant. If a bank forecloses on the mortgage, US federal law requires the bank to give the tenants a 90 day notice to quit, if they want the building emptied. But, it could be that the landlord will survive the bankruptcy, and there will be no foreclosure.


If you sold your home and did not sell for enough to pay the first and second mortgage what happens to the second mortgage lien?

Was the 2nd lien included in and discharged in your bankruptcy? If not, then that lien still encumbers the title to the property and is probably a debt you still owe.


What happens to a mortgage in chapter 11 bankruptcy?

A C-11 is normally only for Corporations. It is a re-organization type of BK. The mortgage is like any other secured debt, and the creditor will be paid by the agreed terms of the reorg or get the property.


One spouse is on the mortgage and wants to claim bankruptcy. The other spouse's name is on the deed. What happens when the first files for bankruptcy?

It sounds like your name was on the deed, you mortgaged the property then you conveyed it to your spouse thinking to effect a change in ownership free of the mortgage. You can't do that.A conveyance to defraud your creditor will be "undone" by the court. Also, if you did transfer ownership subsequent to granting a mortgage the transfer is subject to that mortgage. Your bankruptcy won't simply wipe out your mortgage and make the property free and clear since you transferred it to your spouse. In addition, the bank can demand payment in full under the "due on transfer" clause in the mortgage. You have a tangled web and you should consult with an attorney who specializes in bankruptcy.It sounds like your name was on the deed, you mortgaged the property then you conveyed it to your spouse thinking to effect a change in ownership free of the mortgage. You can't do that.A conveyance to defraud your creditor will be "undone" by the court. Also, if you did transfer ownership subsequent to granting a mortgage the transfer is subject to that mortgage. Your bankruptcy won't simply wipe out your mortgage and make the property free and clear since you transferred it to your spouse. In addition, the bank can demand payment in full under the "due on transfer" clause in the mortgage. You have a tangled web and you should consult with an attorney who specializes in bankruptcy.It sounds like your name was on the deed, you mortgaged the property then you conveyed it to your spouse thinking to effect a change in ownership free of the mortgage. You can't do that.A conveyance to defraud your creditor will be "undone" by the court. Also, if you did transfer ownership subsequent to granting a mortgage the transfer is subject to that mortgage. Your bankruptcy won't simply wipe out your mortgage and make the property free and clear since you transferred it to your spouse. In addition, the bank can demand payment in full under the "due on transfer" clause in the mortgage. You have a tangled web and you should consult with an attorney who specializes in bankruptcy.It sounds like your name was on the deed, you mortgaged the property then you conveyed it to your spouse thinking to effect a change in ownership free of the mortgage. You can't do that.A conveyance to defraud your creditor will be "undone" by the court. Also, if you did transfer ownership subsequent to granting a mortgage the transfer is subject to that mortgage. Your bankruptcy won't simply wipe out your mortgage and make the property free and clear since you transferred it to your spouse. In addition, the bank can demand payment in full under the "due on transfer" clause in the mortgage. You have a tangled web and you should consult with an attorney who specializes in bankruptcy.


What happens when you remove a cosigner from your house deed?

First and foremost, you cannot remove a "co-signer" of a mortgage from the obligations of the mortgage. They may release their interest in the property by signing a deed but that doesn't release them from their obligation to pay the mortgage.This type of situation often happens in a divorce when the parties have a poorly drawn agreement that one will convey their interest to the other and the other will take responsibility for the mortgage. It doesn't work that way legally. The bank is not bound by a divorce agreement. The mortgage must be paid off and refinanced in the name of the person who will take sole ownership.


What happens when you default on your chapter 13 bankruptcy and your mortgage bank is going to foreclose?

You can either try to modify your 13 plan payments, convert to a chapter 7, or dismiss your BK.


If a bank that holds your mortgage fails what happens to that mortgage?

See http://www.fivecentnickel.com/2008/09/22/what-happens-to-your-mortgage-if-your-bank-fails/


What happens if a co signer files bankruptcy?

They both go bankruptcy


What happens to the second mortgage if the first mortgage is sold?

Nothing happens to it. It still remains in second place.


Still have questions?