Heading For Bankruptcy, Parents Co-Own My House
My question involves bankruptcy in the state of California...
I am going to file for BK. I will lose my home as i can not afford to make the payments. I am considering just letting it foreclose, but am concerned about them coming after me or my parents since all 3 of us are on the loan. Mortgage is $630,000....property value now around $520,000. So a huge difference...the lender will not be able to get back all of the original loan money. If I go BK, can the loan company go after my parents for the remainder of the balance after the home is foreclosed and sold at auction? Should I BK or just let it foreclose? I really don't want my parents to be liable (yes I know they are on the loan, they understand the credit hit, but are scared about being responsible for the difference in money owed).
Thank you kindly
Re: Heading For Bankruptcy, Parents Co-Own My House
Are you looking at Chapter 7 or Chapter 13?
If you file Chapter 7 and it is discharged, your parents will still be held accountable for the entire amount due.
Should the home go to foreclosure, all three of you will be held responsible for any difference.
It would be in your best interests to get an attorney and explore your options.