How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask WALLSTREETESQ Your Own Question
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
16356563
Type Your Bankruptcy Law Question Here...
WALLSTREETESQ is online now
A new question is answered every 9 seconds

If the joint tenant is not filing for bankruptcy and continues

This answer was rated:

If the joint tenant is not filing for bankruptcy and continues to pay the expenses does this effect the joint tenants credit?

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 :

A bankruptcy of one party does not hurt the credit of the other parties,

WALLSTREETESQ :

It may hurt the ability of all the parties to enter into a new modification of the loan,

WALLSTREETESQ :

but it would not hurt the non filing parties in terms of credit ratings,

Customer:

So the filing party is primary on loan we are 3rd and 4th. We have great credit 800's and have never had any bad credit reports. We have twins that are 12 and will be heading to college and don't want any bad situation to fall on our ability to borrow in the future. Our option was refinancing property in our name but it adds $4k to loan and interest goes up as well to 4.87. THe value is currently less than what is owed. I do understand we may not have option to get a better loan in future if we don't do it now. But we are primarily concerned with how it would affect our credit. If we don't continue to pay on loan it would effect our credit ...or not?

Customer:

as far as your initial response is this the case in all states?

WALLSTREETESQ :

if you do not pay the loan, that will hurt your credit, if you are on the mortgage,

WALLSTREETESQ :

this is valid in all states

WALLSTREETESQ :

if the property goes into foreclosure,

WALLSTREETESQ :

that would lower your score significanlty,

WALLSTREETESQ :

if you can afford the payments it would be best to pay,

WALLSTREETESQ :

if not, a chapter 13 may help, it reduces your other debts so you can pay the loan,

Customer:

so now the only issue is if I think the loan deal would be best to refi as currently we are in an adjustable rate mortgage which is low since rates are at a all time low. It does have potential to increase to max of 5.75 i believe. The property is a vacation rental so it basically pays for itself. despite issues it is holding on not a money maker but holds its own. as long as no hurricane damage we could survive.

WALLSTREETESQ :

yes,

WALLSTREETESQ :

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

Customer:

Should we file a quick claim deed on the property---i know it doesn't do anything with the loan

WALLSTREETESQ :

that could help but, the names on the mortgage is what matters for credit rating issues

WALLSTREETESQ :

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

WALLSTREETESQ :

If satisfied with our service please provide us with positive feedback,

Customer:

ok summary

Customer:

so continue to pay on the loan might be best and either sell or refi as property situation improves in 5-10 years

WALLSTREETESQ :

yes,

WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you