What happens if say single person A buys a home, non-recourse loan. A marries person B – both have impeccable credit. Unfortunately person A took out an option loan and the reset presents a ridiculous payment on a property not worth the monthly payment, but they make the payment because the alternative is default. Lets say the loan is refi’d into a fixed loan and now the loan is recourse – but the only person on the loan is still person A. At some point they decide to walk away from the property – can the bank go after the co-mingled assets of A&B, plus what B had before the marriage? What happens to the credit of A&B?
