Legal Question in Real Estate Law in Georgia
I married a year ago. My husband has a home and loan in Georgia (USA) his name only. I have a home and loan in my name only in Indiana (USA). He is upside down on his house and wants to default on his loan. Does this have an effect on my home in Indiana and my credit?
To add to this question, We both currently live in Georgia and both our names are currently on a checking account in Georgia.
2 Answers from Attorneys
When he defaults, if the lender sues for a deficiency, he will owe that upside down amount and can be garnisheed. Your joint bank account could then be seized (along with some of his paycheck). He may also have tax consequences.
Before he makes such a decision, he needs to see a lawyer. One option: wiping out the loan in bankruptcy.
A spouse's financial problems almost always affects the other person, directly or indirectly. Absent dire situation, he should honor his obligation to pay the loan, upside down or not.
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