- NEW!
by Anonymous on October 17th, 2004
Disclaimer: I'm not a lawyer and if this situation applies to you, consult a lawyer in your state.
Assuming the title search came up with only one owner and the bank lent the money on that assumption, there are two possibilities that can happen. The bankruptcy court could force the sale of the person's portion of the property or the bank could file a claim from the title insurance. The mortgages would most likely not be deemed valid and more than likely, the county recorder would have rejected the mortgage prior to this being an issue. In New York, where I am, the county clerk reviews all documents and all recorded documents on the property to see if the mortgage is done correctly. So, while the mortgage is invalid, the promissory note (remember, a "mortgage" has two parts. The first being the note which is your personal promise to pay the money back and the second part is the mortgage proper which gives the house as collateral for the loan in the event of default) still would stand and a bankruptcy court may force the sale of the debtor's share of the property if not the whole property. However, I will research this answer further and see what the law says.
I have a 70,000 loan with 8% fixed interest rate but my payments are from 640.00 to 798.00 one was 815.00 is this right?
by jammnwright on August 25th, 2010
| 1 person likes this
how do you get this application for the Hamp Program for saving your mortgage?
by londa1017 on June 8th, 2010
| 1 person likes this
The CFPB: Not Everyone is an Attorney?
by mdGreg on September 17th, 2010
| 1 person likes this
Did you refi, now that rates are at rock bottom?
by Piano Player on June 20th, 2010
| 1 person likes this
What is mortgage?
by bonezip on June 9th, 2010
| 1 person likes this
You're reading If a person takes out a mortgage then declares bankruptcy, and it's discovered that the deed had two names on it, and the second person never signed the mortgage, is the mortgage valid?
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