# Judgement mortgage,will my sister be affected?



## corktim (10 Jul 2011)

Hi All,

I own a house with my sister,she is only named on the mortgage but not on the title. I feel that soon enough im going to be in big trouble with my mortgage and there will be a judgement registered against me and i suppose against the house we own together.

If this happens will the fact that she is not on the deeds keep her credit history intact? 

Thanks for any replies!


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## Panacea (10 Jul 2011)

In the event of default any judgement would be against both parties named on the mortgage and not just against a single party.


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## corktim (10 Jul 2011)

Sorry i probably didnt explain myself properly. I would not be defaulting on the property i own with my sister but on another property i own in my name only. If a judgement is then registered against the one i own with my sister would it affect her if she is not on the title deeds? i thought that a judgment was registered with the deeds and not on the mortgage itself?


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## Panacea (11 Jul 2011)

Is it an option for you to go interest only on both properties and meet the repayments in full that way? It might buy you a couple of years during which time your circumstances may improve 

I do not think that she would be effected if you default on a loan that is in your own name.  She is not a party to that loan agreement and the fact that you both have a separate mortgage in relation to a separate property will not impact on her credit history.

Whilst unlikely at the moment the bank you default on may seek to have a judgement registered against the other property over which you have a joint mortgage although they will be in line behind whoever the primary lender is for any potential proceeds.

I am somewhat surprised that her name is not on the deeds even though she is named on the mortgage. Why would she not have had her interest in the property registered/protected?


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## corktim (11 Jul 2011)

Thanks again for the reply

Im already on interest only on both and still having to put about €600 per month towards both loans & thats not including annual coasts so its starting to kill me. 

She helped me out to but out an ex so only went on the mortgage to help me on the income figures to help me buy her out. She doesnt have anything to do with the property apart from that.

I dont mind loosing the other property and having my credit rating destroyed but once she wont be affected if they did register a judgment against that property. Both are in negative equity to the tune of about 120k each!


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## WizardDr (15 Jul 2011)

If both properties are in your name - has your sister an equitable interest?

I think it is entirely possible that judgments could be registred against both and they could force sale..

I would be establishing your sisters equitable interest asap and its not clear that she has this interest..


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## Bronte (22 Jul 2011)

Probably if you default on Property 1 they will force you to sell it.  If it's in negative equity they will then come after property 2.  If your sister owns part of property 2 they cannot get her share, that's if it's worth anything.


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