What will happen if I co-purchase a home with another party who has financial problems?
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What will happen if I co-purchase a home with another party who has financial problems?
We are purchasing a home together but the loan and downpayment is in my name only. However, she wants the deed to have both parties names on it since we both agreed
verbally to split the mortgage cost. That having been said, she had a bankruptcy, has bad credit and IRS/child support/medical bills, which is the reason she was not placed on the mortgage. Would entering into this contract be giving her 50% of the house without any financial obligations? In other words, would her creditors be able to place liens on the property for monies owed since it would become an asset of hers?
Asked on April 7, 2016 under Real Estate Law, Florida
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
This person's creditors could absolutely place liens on the house. Additionally, they could seize or attach other property that you may jointly own. Bottom line, while you can have a contract outlining her rights and obligations regarding the property, her name should not be on the deed.
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