If my name is second on a mortgage and the primary has filed for Chapter 13, how will this affect my credit rating?
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If my name is second on a mortgage and the primary has filed for Chapter 13, how will this affect my credit rating?
I am not married. I have not resided at the residence for 3 years and live out of state.
Asked on February 11, 2013 under Bankruptcy Law, West Virginia
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
It will impact your credit because the second mortgage is not being paid and there is usually an automatic stay on the account which prevents the creditor from doing anything on the account or talking to the borrowers until the matter is approved as a relief from stay. If there is relief from stay granted to the creditor, the creditor can resume discussions with the debtors (including a secondary on the mortgage). At this point, it will impact your credit until you do a couple of things. You can speak to the court as a creditor and file motions to make this a matter that is granted relief from stay and that the primary borrower refinance this account into his or her name along and you be taken off as a result of the refinance and you quit claim your ownership interests if any to the primary borrower (if you are also on the deed).
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