Mortgage Cosigner Legal Help

[molliesmaster]

Does this guy seem like the type to throw muffin punches? If so...coax him into hitting you...threaten legal action unless they make the house situation right.

Obviously don't do this if he's got hands....but knowing the vast majority of people don't know how to throw a bunch....Also, avoid if your made of glass.

Read this a few times then delete this thread.

 

[19hunt92]

I get all the frustration with the in laws, but when you co-sign, you are literally agreeing to pay if he doesn’t. So how can you get mad at someone if signed a contract that said you would pay if they don’t? In my mind, everyone needs to be responsible for themselves. I know you already know this, but any frustration towards the in-laws should be directed back at yourself for the dumb decision. Get it taken care of and move on.

Oh no hard feelings here, this has gone full circle in every blame game we can go through. We are at the get it taken care of point and then move on

 

[MallardSX2]

Does this guy seem like the type to throw muffin punches? If so...coax him into hitting you...threaten legal action unless they make the house situation right.

Obviously don't do this if he's got hands....but knowing the vast majority of people don't know how to throw a bunch....Also, avoid if your made of glass.

Muffin punches or not. Take one for the team and lean into that bitch.

Then lawyer up. lol

 

[Michael Rankin]

Oh no hard feelings here, this has gone full circle in every blame game we can go through. We are at the get it taken care of point and then move on

I really hope you continue to update this through out the process

Lots of people don't realize the consequences of co signing for others.

This could be a great learning experience for others.

In my opinion the only upside is the person you co signed for is happy for a short time

The downside is financial, and emotional destruction..

 

[ben h]

This is the option i want to try and pursue as there is money to be made there but the catch is getting the deed owner to agree to it...unless we can force forclosure to supercede this...

I'm not following this option. If the home does go through forclosure, maximum damage will have occured to your credit (hindering your ability to buy it unless you have cash). If there is money to be made on the house at the forclosure sale, it will likely be purchased by an investor and not revert to the original lender. If you're trying to salvage your credit and get the property, I think your best bet is to act prior to forclosure.

 

[RS3579]

Ski mask, baseball bat, knees.

Tonya Harding

 

[19hunt92]

I'm not following this option. If the home does go through forclosure, maximum damage will have occured to your credit (hindering your ability to buy it unless you have cash). If there is money to be made on the house at the forclosure sale, it will likely be purchased by an investor and not revert to the original lender. If you're trying to salvage your credit and get the property, I think your best bet is to act prior to forclosure.

I have to go over this with an attorney, as the co-signer i cannot take over the house unless the deed owner agrees to it. So i have to remove the deed owner (they wont willingly agree to letting me take over the house themselves) and then take over. I thought i read that i can cut a deal with the bank to buy out the loan so they make their money and the original owner is out of the picture. Keep in mind, my wife and i are seperate entities on this, so one of us would take the credit hit, the other would fund this re-buying.

 

[ben h]

I have to go over this with an attorney, as the co-signer i cannot take over the house unless the deed owner agrees to it. So i have to remove the deed owner (they wont willingly agree to letting me take over the house themselves) and then take over. I thought i read that i can cut a deal with the bank to buy out the loan so they make their money and the original owner is out of the picture. Keep in mind, my wife and i are seperate entities on this, so one of us would take the credit hit, the other would fund this re-buying.

Gotcha, that makes more sense. Hate to say this, but I still think your best bet is to repair your relationship with the owners to the extent possible and talk them into selling it instead of going through with the forclosure, even if that means coughing up some $ to make that happen. Obviously if they're hell bent on going scorched earth, there's not a lot you can do there as you're not really in the driver's seat on this.

Due to the advent of the Mortgage Electronic Registration System (MERS), it can be difficult for an individual to find out what entity even owns the note or loan on the property, let alone find out who can negotiate and parcel out and sell a particular note to you. If it's a private lender or small institution that might not be that hard to navigate that process. Even if you do buy the note, I think you'd need to finish the forclosure process that you're the co-signer on to rid yourself of the original borrowers....never really thought about what happens to credit for a forclosure on yourself before.

 

[svivian]

I have to go over this with an attorney, as the co-signer i cannot take over the house unless the deed owner agrees to it. So i have to remove the deed owner (they wont willingly agree to letting me take over the house themselves) and then take over. I thought i read that i can cut a deal with the bank to buy out the loan so they make their money and the original owner is out of the picture. Keep in mind, my wife and i are seperate entities on this, so one of us would take the credit hit, the other would fund this re-buying.

Only one of you or both of you are on the mortgage that is defaulting?

 

[19hunt92]

Only one of you or both of you are on the mortgage that is defaulting?

Only 1, luckily it gives us a way to move assets to protect what we have as well as use the credit of the other to potentially use for buying the house back. We are talking over all options on what can be used to get any upper hand on this

 

[bozeman]

I’m about to buy a $2mil ranch in CO, can you co-sign with me?

 

[Broomd]

Who is the family in this? Your sister? Wife's sister?
The BIL is obviously a piece of ****, but I always default to the family member for allowing crap like this to happen. Loving family just doesn't do this to another sibling.

Sorry you're dealing with this, sincerely. No good deed goes unpunished.

 

[fwafwow]

Only 1, luckily it gives us a way to move assets to protect what we have as well as use the credit of the other to potentially use for buying the house back. We are talking over all options on what can be used to get any upper hand on this

If you have a lawyer, he or she may want to advise you on whether you actually do this - and whether you post about it online.

 

[19hunt92]

I’m about to buy a $2mil ranch in CO, can you co-sign with me?

Hunting rights?

 

[bozeman]

Yes, I promise.

Hunting rights?

 

[Pharmseller]

Sounds like you and your wife are keeping your relationship with each other healthy. That’s the only thing that matters.





P

 

[sasquatch]

I'm not following this option. If the home does go through forclosure, maximum damage will have occured to your credit (hindering your ability to buy it unless you have cash). If there is money to be made on the house at the forclosure sale, it will likely be purchased by an investor and not revert to the original lender. If you're trying to salvage your credit and get the property, I think your best bet is to act prior to forclosure.

The LAST thing a bank wants to do is own a foreclosed house. That ain’t the business they are in. It almost ALWAYS creates a loss for them.

Credit after foreclosure, yea will be bad, but a bank can do what it wants to do when it wants to do it. If they see an option to potentially recoup all their money, AkA keep the same mortgage going essentially they likely will take it.

They have many options other than full foreclosure.


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[boonez40]

Man thats rough to have to deal with. Been there and done that in a simular situation.

Blew through our savings and what ever out of our income we could afford.

Total loss and major hit to my credit. Been a rough patch and not sure our marriage is going to survive.

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[19hunt92]

So far the update is that she is a co-owner...slight sigh of relief. I am getting into these documents with the lawyer and seeing what the best option is moving forward with still a non-cooperative owner of the loan.

 

[19hunt92]

To wrap this up if anyone was keeping an eye out for info or just dramatic effect: Had a list of options from the lawyer, kind of one of those things where there was no good option but we can pay to play and hope a few things fall our way.
Once we had all options laid out, we approached the other couple and this optimistically sparked their motivation to refianance the house to themselves and remove us from the loan. I was surprised and they took a huge loss of closing costs and interest rates but it relieved us from the loan. Call it a win and an avoided worse situation. Lessons learned