Legal Question in Real Estate Law in Pennsylvania

Own 2 homes have to foreclose on one.

We have a second home that has been for sale for over 2 years. We have not been able to sell it. We can no longer make the payments on both homes. I contacted our bank who refused a deed in lieu. The mortgage is in my name only and the actual deed has my husbands and my name. If they foreclose and there would be a deficiency judgement can they come after our bank accounts, the house we live in, a structured settlement? Will my husband's credit be affected since he is not on the mortgage but was added to the deed later? Any help would be greatly appreciated.


Asked on 10/02/06, 11:43 am

1 Answer from Attorneys
Matthew Kelly Kelly Law

Re: Own 2 homes have to foreclose on one.

I assume only your name appears on the promissory note (which promise is secured by the mortgage). If that is the case, only you are liable on the debt. Most mortgages include a "due on sale" clause which means the transfer from you to you and your husband after executing the note would have caused a default at that time unless the bank agreed. Did they? If there is a deficiency they can only come afer your personal assets, no joint assets, although they may be able to file a lien against your interest in your other house. Should not affect your husband's credit. I would suggest you have an attorney review everything though.

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Answered on 10/02/06, 12:14 pm


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