My sister in law who was 19 at the time was duped into co-signing a mortage for her parents. Now she's 20 and wants to leave and get her own place, but can't because her credit is tied up with the house that her parents live in. What can she do? Is bankruptcy her only out?
Her parents won't agree to let her sign over the house to them, because they dont' want to refinance it in their names...(bad credit) Any thoughts?
2006-09-25 15:56:40 · 7 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
Oh, the stupid things that teenagers do. Your sis in law is screwed. If she files for bankruptcy, she won't qualify either. She'll either have to satisfy the 1st mortgage, or pay cash for the new house.
2006-09-25 16:07:02 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Filing for bankruptcy does not release anyone from anything. Only a discharge from the court, at the end of a bankruptcy case, will do that...and, under the new bankruptcy law, consumer bankruptcies are severly limited.
As to the circumstances you describe, a bankruptcy would not seem to be an option that would yield a favorable result.
However, she may have a defense to the mortgage contract - if she was too young to legally contract for services, or if she was duped into signing, she may be able to get out through legal action.
These defenses are dependent upon state law - so she should contact an attorney in her home state.
2006-09-25 16:12:35 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If her parents are late on their mortgage it has already negatively effected her credit.
If its simply a "debt-to-income ratio" issue, there are home loans that dont look at debt-to-income ratio and dont require that info. So that shouldnt keep her from purchasing a property. The only thing that could really mess it up is if the parents are behind on their mortgage.
If they are late on their mortgage, she may want to speak with an attorney as to the pros and cons of a BK.
2006-09-25 16:04:02 · answer #3 · answered by NOIZE 4 · 0⤊ 0⤋
I don't think she can file and not damage her credit anyway. Does she want to put her parents out of a place to live. Or, tell the parents to move and her keep the house. I don't think it matters how she does it there is going to be alot of hurt family feelings and I wonder if it is worth it.
2006-09-25 16:04:17 · answer #4 · answered by 51ain'tbad 3 · 0⤊ 1⤋
in case you ex continues to be on the deed then legally he continues to be obligated to satisfy the debt. And in any adventure he also needs to word if the abode is going to affix the financial disaster settlement for the sheer undeniable truth that he's on the deed. He can eliminate his call from the call in case you both consent to accomplish that. in case you run out of time and the abode is foreclosed on, you'll merely ought to operate it for your financial disaster. you could not merely "enable the abode go". you signed a criminal settlement to pay a loan. you do not merely wiggle out of it. i don't believe of you could promote a house it truly is foreclosure status (for this reason both denials) because you'll merely be passing the basket. promote in case you could not or declare financial disaster.
2016-12-02 01:57:14 · answer #5 · answered by sargeant 3 · 0⤊ 0⤋
She should get a lawyers advice. Unless she was and can prove duress at time of signing, I don't think there is anything she should do (hence contact a lawyer)
2006-09-25 16:07:15 · answer #6 · answered by MVAC 3 · 0⤊ 0⤋
Just asked my girlfriend who is about to file chapter 7 and she says it should.
2006-09-25 16:07:50 · answer #7 · answered by losboysz 1 · 0⤊ 1⤋