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Coborrower files for bankruptcy

Posted on: 13th Jul, 2012 07:42 am
hello,

i live in florida and own 2 homes. both with a co-borrower. the primary residence is serviced by wells fargo and it current and it protected by florida homestead. the 2nd home is serviced by bank of america and is 4 months past due and will either be sold (short sale - it's appox. 100k underwater) or left to go into foreclosure.

the co-borrower is about to file bankruptcy and not reaffirm either property. i don't care about the 2nd residence ... but i want to know if wells fargo will accelerate the loan on the primary residence because of the bankruptcy? or will i be fine as long as i keep it current? but will i need to get a quit claim deed from the co-borrower to remove them from the primary residence? i probably would not qualify for refinancing the primary residence because of the 2nd residence being past due.

any information you can provide would be greatly appreciated.

thanks
Welcome tonyinbvl,

I don't think Wells Fargo will accelerate the loan. However, it is true that you will have to make payments on time regularly. You can ask the co-borrower to sign a quitclaim deed and remove his/her name from the deed.
Posted on: 13th Jul, 2012 11:04 pm
Hi tonyinbvl,

You can contact a real estate attorney and he will help you in drafting a quitclaim deed.

Thanks
Posted on: 15th Jul, 2012 10:05 pm
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