Now my credit has dropped 200 points. The home is in pre-foreclosure and she has filed for bankruptcy. Will lenders come after my assets? Anything legally I need to do?
You signed the loan, so you are legally obligated to repay it in full, or the lender can sue you, foreclose, and collect from your assets. If you do not bring the mortgage current by paying the past due amounts, then the lender can foreclose, and you will be named as a defendant. If the property is sold at sheriff's sale, and if there are not sufficient sale proceeds to pay the mortgage in full, then the lender can try to collect from you by garnishing your paycheck. You could also file bankruptcy. Use the Find a Lawyer tab to consult a local attorney.
