What can the bank take in a foreclosure?
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What can the bank take in a foreclosure?
About 5 years ago my parents bought a house (purchased for 150k,142k left to pay) under my brother and sister’s name. Now my dad seems unwilling to pay for the house at times and Iwanted to know how it would affect my siblings’ personal belongings. My brother has a car (worth 30k, not paid off) and sister has a house (under her and husband’s name, not paid off); 2 cars (under her husband’s name, neither paid off); business (under husband’s name and his partner, paid off). My sister was not married to her husband when she purchased my parent’s house.
Asked on November 19, 2011 under Real Estate Law, North Carolina
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Whether or not your parents purchased a home five (5) years ago under the names of your brother and sister is not the issue. The issue is in whose name is the loan for the property (assuming there is one) in that there most likely is a mortgage securing the loan?
If the loan is in the names of your parents and not your brother and sister, then they have nothing to worry if the home that your parents bought goes into foreclosure. The reason is that your brother and sister are not obligated on the loan. Since they are not obligated on the loan, they would not have to worry about their credit being damaged or any possible deficiency judgment against them.
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