Can mortgage company goes after other equities?

[ttp_]

Beginning of this year, my wife let her friend bought an investment home under our names and credits, and her friend paid us an amount of money in return for using our excellent credit. Apparently, the Friend could not find anyone to buy or lease the house, and the Friend kept paying mortgage for 7-8 months. This friend just quit paying a couple months ago, and now the loan is in default in our name. If this house get foreclosed, will the mortgage company come after our little house that we currently live in, and other things like banking account, cars, etc... Any comments, advice are appreciated.

 

[Michael Wechsler]

Originally posted by ttp
Beginning of this year, my wife let her friend bought an investment home under our names and credits, and her friend paid us an amount of money in return for using our excellent credit. Apparently, the Friend could not find anyone to buy or lease the house, and the Friend kept paying mortgage for 7-8 months. This friend just quit paying a couple months ago, and now the loan is in default in our name. If this house get foreclosed, will the mortgage company come after our little house that we currently live in, and other things like banking account, cars, etc... Any comments, advice are appreciated.

Yes... this is a problem and the reason why I would never allow a friend to buy a large purchase in my name. If I did, there would be a written agreement with regard to the friends assets as well. Do you have anything of the sort? Regardless, I can only say that you have a problem with the mortgage since the friend seems to be only responsible to you, not the bank. Did the friend cosign the mortgage?