My mother-in law put a loan on a house she owns to pay for an addition on my wifes and mine home to live with us being her dad is disabled and needs our help. The idea was to rent out the home and pay for the loan with the rent money. With the real estate market taking such a big hit, we can't get enough rent money to pay for the loan which is draining her savings account in which she lives off of. The legal question is if she defaults on the loan will me and my wifes credit suffer because my wife is on the deed along with my mother in law for the rental home?
1 Answer from Attorneys
Not if she isn't on the note.