Hello Fellow Redditors!
Long time lurker, first time posted.
Location: MD
My mom bought a house in the mid-2000s right before the financial crisis for around $300k. The house has two loans on it. But, due to the financial crisis, she lost her job and dad did as well. Both parents also had health issues which drained their savings and now the house is worth around $200k.
My parents thought it would be a good idea to not go under and continued paying the mortgage by renting out the house and moving into a much smaller accommodation. However, the tenant that was staying there completely wrecked the place and because the house doesn't have equity and they don't have any savings, what are their options?
The house has two loans on moms name but both parents are on the title. Can they simply walk away from the house and let it foreclose? What happens with the second (smaller) loan?
If mom files bankruptcy, does it affect dads credit too?
Submitted December 03, 2020 at 09:07PM by stealthwarriorofwl https://ift.tt/2IcWxOQ
