Owning a home with someone, split up, house sells but you still owe money?

Deal Score0

Is there a case here at all?

One borrower (“Cindy”) put’s down 30k so they qualify for the loan. Then she makes every mortgage payment thereafter. This is due to the other borrower (“Joe”) just being a douche and really really bad with his money.

Cindy finally get’s fed up and moves out.

Joe, still living in the house, says multiple times “I’ve been keeping up with paying the mortgage” and “I’m fixing it up so we can sell it”. Cindy even gives him checks every month because her name is still on the loan.

Come to find out, Joe was lying the whole time and the house was in forecloser. And the “repairs” he was making was actually damages. (Joe had become a huge alcoholic and tried his hand at carpentry).

So, the house foreclosed and is now selling for a lot, lot less than what they still owe the bank.

Now, putting aside the fact that Cindy should have never signed a loan with this jerk in the first place; is there anything she can do?
Zarg – thanks for pointing out the obvious and stating what she already knows (while not even answering the question), but getting her kids away from the drunk was more important than worrying about credit scores, yes?

I gave you need-to-know info. Don’t assume you know the entire situation.

  1. Reply
    May 3, 2011 at 11:48 pm

    Cindy puts $ 30,000 down and SHE walks out? is SHE an IDIOT?
    Cindy’s credit is going to get trashed if Joe has NOT been paying the mortgage
    Cindy had now lost all $ 30,000 of her deposit and must share in any money still owed to the bank
    Cindy may have to file for bankruptcy

  2. Reply
    Janice 10
    May 3, 2011 at 11:49 pm

    No, she along with Joe still owe the bank the remaining balance of the loan, and the bank will collect and even garnish your wages so it is better to make payment arrangements with the bank to avoid your check being garnished.

  3. Reply
    the kid
    May 3, 2011 at 11:58 pm

    She can sue him if she was giving him money to pay the mortgage and he was not paying it. She, if she proves her case, would be entitled to recoup those payments she made to him that were for the mortgage. That’s it. She loses her $ 30K down payment, etc.

    She never should have left. If she was the one who put down 30K, she should have made him leave.

  4. Reply
    May 4, 2011 at 12:43 am

    Cindy doesn’t really have any way to go to recoup her money. She could take “JOE” to small claims and try to get a judgment against him for not paying the mortgage with the money she gave him but she probably wouldn’t prevail, even if she did Joe wouldn’t pay the judgment as he is a flake. Hopefully she lives in a non recourse state where the bank can’t come after her for the shortage and she will only get a 1099 tax bill on the deficiency plus loss of her good credit scores.

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