I'm a co-borrower on my sister's house. I do not live with her, but give a $25K gift. If I foreclose on my OWN house, will it affect her in

Asked by John Adams, Boston, MA Sat Feb 20, 2010

anyway? She is doing fine without me so I'd hate for her to be affected by my misfortune. What I'm worried about is if they could pin her with my deficiency debt, and thus force her to pony up the $25K gift, or even sell her house to pay the entire deficiency.

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9
Elizabeth He…, Agent, Agawam, MA
Sat Feb 20, 2010
You want to pose that question to your bankruptcy attorney as that is his scope of expertise and he would be able to answer that question for you best.
1 vote
..., , Lexington, MA
Fri Feb 26, 2010
Hi John

Sorry to hear of your troubles - it's good that you're addressing the implications.

Being a co-borrower places you on the deed and mortgage thereby making your sister's house an asset of yours, so anything could be possible. She may wish to purchase without you or, if she already owns, refinance to remove you from her mortagage and deed. How that impacts your situation is best discussed with an attorney.

Tom
Eagle Nationwide Mortgage - Thomas.Stevens@ENMCdirect.com
0 votes
Tom and Joan…, Agent, Boston, MA
Wed Feb 24, 2010
John:

If I read your question correctly you are in the process of purchasing a home. The other way it can be read is that she has closed. Either way if you go down she will follow you. I would recommend having her do a refinance and get you off her mortgage. You are definitely should be worried, and she should be too. If you need attorney referrals as a Loss Mitigation Certified I can refer attorneys who handle these situations. Please feel free to contact me. Best
0 votes
greg, , Boston, MA
Mon Feb 22, 2010
Maybe the best solution is to seek to Short Sell your home. You may be protected under the Mortgage Forgiveness Act against future claims. If you need my assistance, you can reach me directly at 339-237-7395.

Gregory L. Burton

Principal Broker

Burton Associates Real Estate

"A Commitment to Community!"

392A Warren St

Roxbury, MA 02119

617 445-2250

339-237-7395 direct

617 445-0043 fax

617 507-8470 efax

http://www.burtonre.com

gburton@burtonre.com
0 votes
, ,
Sun Feb 21, 2010
I am sure you have reasoning behind this, but I can't quite figure out what it is. Why are you giving your sister $25,000 if you are allowing your own home to go into foreclosure? Definitely speak to a bankruptcy attorney to see if there is any kind of look-back period.
0 votes
Heidi Conway, Agent, Marshfield, MA
Sun Feb 21, 2010
John, You should contact an attorney to answer these questions. Mark Styles is great and may be able to help with the foreclosure as well. His number is 617-847-4242 he is in Quincy
email: mstiles@stiles-law.com he is great and will know where and what to do! Call or email asap!

Heidi Conway
SUCCESS Real Estate
781-985-3147 (Cell)
0 votes
Fred Glick, Agent, Mountain View, CA
Sun Feb 21, 2010
It depends how you took title and if your lender will pursue the a deficiency judgement.

Check with a real estate finance attorney.
Web Reference:  http://fredglick.com
0 votes
William Patt…, Agent, Boston, MA
Sun Feb 21, 2010
John,
Give a call to the person that brokered the loan. Even if the loan is being managed by another lender or bank right now, the loan originator could more clearly answer your questions about this mortgage.

Good luck.

Cheers,
Bill P.
0 votes
Heidi Zizza, Agent, Framingham, MA
Sun Feb 21, 2010
John she can refinance and take you out of the scenario. Tell her to call a mortgage lender and see what she can do.
Web Reference:  http://www.mdmrealtyinc.com
0 votes
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