What to do if I acquired a home as a co-signer and the owner defaulted filing bankruptcy?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What to do if I acquired a home as a co-signer and the owner defaulted filing bankruptcy?
It was current on the monthly payments I was trying to sell it but no luck. I had a couple call me about contract for deed; I said fine. There is no lease. Verbally we agree they pick up the payments then take over the loan. The monthly payments was around $850 it was behind 2 payments but since they was putting nothing down on it they agreed to pay the back taxes and back payments they put $1500 when they first moved then paid nothing for 3 months I called them they then they made a payment to the bank or $1600. They stopped paying again and its 5 months behind and the house is now foreclose. I mailed certified mail letter giving them a 30 day notice on the 15th. of this month.
Asked on October 31, 2012 under Real Estate Law, Minnesota
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Unfortunately, you need to sort out exactly who has what relationship to you. You have a renter....but are you the titled owner of the home? If not, then you really have no enforceable agreement with the renters and the bank will have to evict those tenants. If you are merely a co-signer on the loan (the promissory note), then you need to talk with the bank about trying to a) file a motion in bankruptcy court with the bank to get a relief from the automotic stay placed on this loan as a result of the bankruptcy and b) trying to refinance in your name alone and then try to either sell, short sell or do a deed in lieu.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.