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Am I liable for a mortgage bond if I consented as a minor?

Am I liable for a mortgage bond if I consented as a minor?

Q: Are prepayment penalties legal in New Jersey?

Yes, prepayment penalties are legal in New Jersey, but they must be clearly stated in the mortgage agreement. These penalties can apply if you pay off your mortgage early. However, many lenders may not impose such penalties, so it's essential to review your loan terms carefully before signing.

Full question:

I am a 17-year-old woman living in New Jersey. My husband mortgaged my property with my consent to secure a bank loan. But now he is not making payments on the loan. Am I liable for any bond executed in connection with that mortgage?

Category: Marriage
Subcategory: Minor
Date: 04/07/2025
State: New Jersey

Answer:

In New Jersey, a spouse can mortgage the other spouse's property with consent. Even if one spouse is a minor, they can still be liable for any bond related to the mortgage if they consented to it. According to N.J. Stat. § 37:2-30, a mortgage executed by an adult married person with their minor spouse (who is 17 years or older) is valid. This means that the minor spouse is liable on any bond associated with the mortgage as if they were of legal age at the time of execution. Therefore, you are likely liable for any bond connected to the mortgage.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

How do I remove one person from a joint mortgage?

To remove one person from a joint mortgage in New Jersey, both parties must agree to the change. You can refinance the mortgage in the name of the remaining borrower, which pays off the existing loan. Alternatively, you may need to sell the property to pay off the mortgage. It's important to consult with your lender and possibly a legal professional to ensure the process is handled correctly.

What happens if your spouse is not on the mortgage but on the deed?

If your spouse is on the deed but not on the mortgage, they still have ownership rights to the property. However, they are not responsible for the mortgage payments. If the mortgage defaults, the lender can pursue the property, but your spouse's ownership rights remain intact. It's advisable to communicate openly and consider legal advice for clarity on rights and obligations.

Are prepayment penalties legal in New Jersey?

What happens if you split up with someone you have a mortgage with?

If you split up with someone you share a mortgage with in New Jersey, both parties remain responsible for the mortgage payments, regardless of the relationship status. You may need to negotiate who will keep the property or consider refinancing to remove one party from the mortgage. Legal advice can help navigate the division of assets and responsibilities.

What happens if one person on a mortgage stops paying?

If one person on a mortgage stops paying in New Jersey, the other borrower is still responsible for the full mortgage payment. The lender can pursue foreclosure on the property if payments are not made. It's important for both parties to communicate and consider options like loan modification or refinancing to address the situation.

What happens if someone stops paying a mortgage?

If someone stops paying a mortgage in New Jersey, the lender can initiate foreclosure proceedings after a period of missed payments. Both borrowers are typically responsible for the mortgage, so the other party may need to cover payments to avoid foreclosure. It's crucial to seek legal advice to explore options and protect your interests.