If there are 2 people on a loan and one defaults what can the secondary person do?

Question

does the bank assign a realtor to help sell the home? Does the bank have to have permission from the secondary party in order to show the home?

Answer 1

The secondary person is also responsible for the loan.

the bank does not assign a realtor to help YOU sell the home.  The bank may sign a reator to sell THEIR home after foreclosure.  The bank does not need the permission,  from the sendary party to show the home.  Once the foreclosure is final, the court has given the permsission to sell the home so to speak.  It will be their home to sell.

Answer 2

person number two gets screwed

Answer 3

1. the 2nd person can pay the loan

2. the joint owners can put the property up for sale

3. the 2nd person can sue for partition of the property to try to take complete ownership or force the sale.

If the owners do not co-operate with each other, it becomes very expensive to litigate and a nightmare to sell. My advice to you is to see a real estate lawyer immediately. Perhaps the lawyer can help you and your co-owner work out an exit strategy.

Answer 4

One for all and all for one.  Keep this thing moving.  Have the deadbeat sign a quit claim deed and get a roomie until you can sell this thing.  If you let this property go back to the bank you will be unable to purchase another property for at least three years under an FHA or conventional mortgage.  In addition your credit will be trashed.  After all is said and done, I would take the other party to civil court and sue for damages.

Answer 5

No, until the property is foreclosed, it is your responsibility to hire a Realtor to attempt to sell the property.  Both owners will have to sign the listing agreement, it's up to you to work out how it will be shown.

Once it is foreclosed, it is all up to the bank, you will have no involvement.

Answer 6

You would both need to sign the listing agreement if the home is jointly owned.