Legal Question in Real Estate Law in Michigan
separation real estate
my boyfriend and i have a house together. we also have a child. we are both on the deed but he is on the loan. i recently took out a home equity loan in my name and used the funds to purchase a new home so that i can move out. once i move if i dont pay the home equity loan can he come after me or my new home. or does he have to sell the house we had to pay the loan off.
1 Answer from Attorneys
Re: separation real estate
The bank would foreclose on the house and the house would be sold and any liens would be paid. But consider that turnabout is fair play. He could default on the loan or worse, de-value the house and default on the loan. His bank would foreclose and since they have a higher priority, they would get paid out of the proceeds first. Any money, if any, (and who know if there would be any in this market) that would be left would go to pay junior loans, such as your equity loan. If there were not enough money to pay your loan, your bank could go after your personal assets, such as your new home.
(Please do not rely on this communication which does not create an attorney-client relationship and which is intended merely as a discussion of legal principles and is not to be relied upon.)
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