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7. Fred is shocked when the lender files to foreclose the mortgage. “Oh no” he thinks “Now I will co-own the house with a bank!” Is he right? _ ______________________________________________________________________________ _ ______________________________________________________________________________ 8. Fred buys out Will’s interest and makes up all of the payments to the mortgage lender. He is now the sole owner of the house. One day he meets a beguiling young lady. They fall madly in love and decide to get married. To prove his love he gifts her a joint tenancy interest in his home before they get married. Soon afterwards they have a big fight and break up. He tries to undo the joint tenancy and take back the interest he gifted to the beguiling young lady. Can he do this? _ ______________________________________________________________________________ 9. Fred and his beguiling girlfriend make up and get back together. She starts a small business with her deadbeat brother, Dan. She asks Fred to co-sign their business loan. “Ok” he says, “but you and Dan are 100% responsible for making the payments. Leave me out of it!” One day Fred checks his credit score and is shocked to find it has fallen 100 points! He discovers that Deadbeat Dan and the Beguiler have defaulted on their loan payments. How can that affect Fred’s credit score? _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 10. When Will and Fred owned the house together, they had a joint savings account where they each deposited about $1500 a year to cover taxes and insurance. It’s tax time! Fred is shocked when he checks the account and finds it’s been cleaned out by Will. He complains to the bank but to no avail. What principle of joint tenancy made this possible? _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 11. Fred’s beguiling girlfriend owes $100,000 in delinquent income taxes. Fred is surprised when he discovers the IRS is attempting to force a sale of the house for non-payment of her income taxes. “You can’t do that!” he tells them. “I’m not responsible for any of those taxes!” Can the IRS foreclose on the house even though Fred, personally, doesn’t owe those taxes? _ ______________________________________________________________________________ _ ______________________________________________________________________________ PRODUCT PREVIEW
Chapter 16 | Share with Care! 318
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