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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17223
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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For tenancy in common real estate, where both parties co-signed

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For tenancy in common real estate, where both parties co-signed the mortgage, and where the property is worth less than the mortgage, if the property is sold in bankruptcy, will sale proceeds be divided between the debtor in bankruptcy and the tenant in common not in bankruptcy before paying off the lender, or will all proceeds of the sale go to the lender?

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

If the property is worth less then the mortgage, during a sale, the lender would have to be paid first, so they would receive whatever is given for the property,

WALLSTREETESQ :

the other parties would not receive anything,

WALLSTREETESQ :

Since this is a bankruptcy, any monies that were to be divided would first go to the bankruptcy court to pay the debts of the individual.

WALLSTREETESQ :

But since the home is underwater, the secured lender would receive the entire amount.

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask.

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