Legal Question in Real Estate Law in Indiana

You are "on the hook" for the house. If you signed on the mortgage, you owe the mortgage. It will affect your credit. If the bank/lender sells the house for a loss, you will owe the bank the difference between what the house sold for, and whatever the balance of the loan was. If the house is sold and the bank gets all its money back, you don't owe them anything.

You are responsble for the loan if the mortgage is in your name. Your credit will be effected in a negative way. I agree with Voyle that "If the bank/lender sells the house for a loss, you will owe the bank the difference between what the house sold for, and whatever the balance of the loan was. If the house is sold and the bank gets all its money back, you don't owe them anything." Additionally, sometimes, an owner of a home is able to place it for ahort sale with the lender's approval. A short sale is a sale of a house, usually through a broker, for less than what is owed. The bank forgives the difference between what is owed and what the house is sold for. However, your credit is still effected and you may have tax liability on the amount that is forgiven.