Mortgage Cosigner Legal Help

[Michael Rankin]

That’s great to hear.

I can’t believe they were able to refinance after being late on almost half the payments on the original loan.

Sounds like you got this resolved in about as clean of a way possible. That sounded like an extremely ugly situation.

 

[MTPipeliner]

This turned out way better than I ever would have expected. Maybe you should buy a lottery ticket (or maybe you’ve already used up all your luck on this situation)

 

[KenLee]

This turned out way better than I ever would have expected. Maybe you should buy a lottery ticket (or maybe you’ve already used up all your luck on this situation)

Offender family members probably realized they were gonna lose the equity that the housing market upswing produced.

 

[Seth]

Thanks for the follow up and glad it worked out for you.

 

[northernalpine]

Something to consider in hindsight: you could have refi’d them off the loan, assumed total ownership, and rented it out to create an investment property using other people’s money to build your equity. Bigger risk? Yes, but only if the property goes empty long term or the average rent for the area would have been below the mortgage.

 

[KenLee]

Offender family members probably realized they were gonna lose the equity that the housing market upswing produced.

Something to consider in hindsight: you could have refi’d them off the loan, assumed total ownership, and rented it out to create an investment property using other people’s money to build your equity. Bigger risk? Yes, but only if the property goes empty long term or the average rent for the area would have been below the mortgage.

How in the heck would you do that unless they signed it over or the house was foreclosed on?

 

[northernalpine]

How in the heck would you do that unless they signed it over or the house was foreclosed on?

Same as the refinance they ended up doing to remove him as co-sign, just the other way. I’ve co-signed for two separate family members but added an additional legal contract to address late payments as immediate forfeiture of property rights and any equity gained…houses are a big investment and you have to protect yourself and your financial interests.

 

[KenLee]

Same as the refinance they ended up doing to remove him as co-sign, just the other way. I’ve co-signed for two separate family members but added an additional legal contract to address late payments as immediate forfeiture of property rights and any equity gained…houses are a big investment and you have to protect yourself and your financial interests.

They didn't have the needed agreement, so they were potentially screwed. It was discussed fairly early in the thread.

 

[northernalpine]

They didn't have the needed agreement, so they were potentially screwed. It was discussed fairly early in the thread.

Tracking. My first post you quoted offered a different outcome approach, without a binding contract, in order to move to a resolution. The default answer for most in this situation is “pay on time or sell” with a pile of stress as the OP stated about the tension and conflict within the family. The other party might have been in over their head or any one of a number of life situations that happen. My alternative was to remove the weak link and turn it into revenue, albeit at a greater financial burden to the OP, which may not have been an option they were able to execute or an option they considered.

I’m glad it worked out for the OP in the end, it was a tough spot to be in.

 

[longspeak74]

Glad it worked out for you. Hope the relationship with the family starts to improve now that they have to eat crow a little.