When a property goes into default in a recourse state, can the bank come after other property you own in a non-recourse state?

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When a property goes into default in a recourse state, can the bank come after other property you own in a non-recourse state?

My husband co-signed a loan for his cousin before we were married. My husband’s name is on the mortgage loan but not on the title. The property is located in GA, but we live in CA. We want to buy a house in CA, but I am afraid of what could happen if my husband’s cousin stops paying the GA house mortgage. Being that GA is a recourse state, if the GA house went into default, could the bank come after our assets? Could a lien be placed on any other property we own in CA?

Asked on July 30, 2011 Georgia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Assuming there is a deficiency judgment resulting from a foreclosure of real property that your husband co-signed a loan on secured by real property in Georgia, there is a chance that he and his cousin could be jointly and severally liable for the judgment on the loan.

The issue is can the judgment creditor of the Georgia judgment execute upon assets of your husband that are in California even though Calfornia is a non-recourse state on purchase money loans. The answer to your question would be determined if California recognizes a sister state judgment from the State of Georgia.

To answer your question further, you should do research online if the State of California recognizes a sister state judgment for levying purposes on a judgment from the State of Georgie.

Good luck.

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Assuming there is a deficiency judgment resulting from a foreclosure of real property that your husband co-signed a loan on secured by real property in Georgia, there is a chance that he and his cousin could be jointly and severally liable for the judgment on the loan.

The issue is can the judgment creditor of the Georgia judgment execute upon assets of your husband that are in California even though Calfornia is a non-recourse state on purchase money loans. The answer to your question would be determined if California recognizes a sister state judgment from the State of Georgia.

To answer your question further, you should do research online if the State of California recognizes a sister state judgment for levying purposes on a judgment from the State of Georgie.

Good luck.


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