Legal Question in Real Estate Law in California
My name on the mortgage loan with my brother in jeopardy
A house was purchased for $212,000.00 in 1989 with my ex-husband, brother and his wife. My ex-husband and I signed a quit claim in the title last 1992 because we were divorcing,leaving just my brother and his wife in the title. However, my ex-husband�s name and my name were left in the loan because my brother can not qualify of the loan amount. My brother lost his job, and my brother and his wife might file for bankruptcy. The monthly mortgage is paid by my
brother; I claim the interest during tax time. Can the
mortgage company agree to withdraw my name per my request in the loan without refinancing the
house? I�m afraid that my credit is in jeopardy. What kind of asset/credit protection do I need?
2 Answers from Attorneys
Re: My name on the mortgage loan with my brother in jeopardy
Yes, they can remove your name from the loan but they are unlikely to ever do that. The fact is you signed a contract with them promising to make the loan payments and there is no reason whatsoever for them to release you from that promise.
Re: My name on the mortgage loan with my brother in jeopardy
In light of the facts you gave there is no reason for the mortgage company to release you from liability. Why don't you sell the house or get a tenant who can make the payments in rent?
Your brother should be pleased to get out of the house. Although you may have quit claimed the house, he can quit claim it back to you. If brother takes out bankruptcy and walks from the house, the mortgage company may foreclose and hold your responsible for any deficiency, plus costs and attorney fees.
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