Consequential Judgment

My husband has rental property that he is unable to pay for since he lost his job.  I am NOT on that loan but we do share a mortgage on our primary residence.  My question is how will the foreclosure affect me?  Can a judgment be filled on our home which we both own…what are my consequences?

Brenda

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Hi Brenda,

A borrower’s primary residence may have varying amounts of protection per state law.  In Florida, for example, there exists an unlimited amount of homestead exemption from levy and execution of judgment liens on a consumer’s primary residence.  In most states that I am aware of a judgment creditor can not execute a judgment and foreclose a lien on a primary residence which is protected through homestead, although if a borrower refinanced or sold the property, the judgment creditor might cloud title and have to be paid.

Other jointly held real estate and joint bank accounts might be fair game depending on state law and if the creditor’s claim resulted in a court awarded judgment.  You should talk to an attorney licensed to practice law in your state.

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.