legal responsibilities of deceased cosigner on private stude

Is there a way to buy yourself out of a loan as a cosigner?

hi guy,

the primary borrower of the loan will have to refinance the mortgage in his or her name in order to remove you as the co-signer for the mortgage.

I took out two loans with sallie mae for school. I defaulted on the loan, I was sued and my wages are being garnished. My grandmother co-signed the loan. They never came after her for anything. She just passed away and the family wants to sell her house. Is the estate responsible for the loan balance?

Hi Gigi,

As you're the primary borrower of the loan, you'll be liable for paying it. I don't think your grandmother's estate will be liable for the loan in any way.

Thanks

My Grandma is a cosigner for my student loans, when she dies I assume they don't disappear.. So if I decide to stop paying on them how badly does that effect my credit when they go into default? Also, I just filed bankruptcy so I want all my debt eliminated so is there a way to do that with student loans?

Welcome Sammer,

Your credit scores will be badly affected if you don't pay the student loan. You're the primary borrower for the loan and the lender will come after you in order to recover the debt. Also, student loans don't get discharged in bankruptcy filing. Thus, you'll be liable for the mortgage payments even though you've filed for bankruptcy.

after divorce a family member helped me refi house to get ex off of mortgage,they passed away,i then modified loan,(big mistake),it messed up my credit,now i am in foreclosure and also bancruptcy,was going to sell house but cant cause there is not clear title due to deceased coborrower.i have decided to include house in bancruptcy,now the former spouse(now remarried btw) of the family member is contacting all "heirs"to see if they are interested in my house.

can i claim the estate in my bancruptcy to avoid greedy relatives? btw the house is 40k upside down,and deceased had no will so all went to the deceased spouse...

Hi Guest,

This is a complex situation. I will suggest you to contact a bankruptcy attorney and a real estate attorney and take their opinion in this case. They will better guide you in this matter.

Hopefully, you can find a real estate attorney who's well-versed in bankruptcy law or a bankruptcy attorney who's well-versed in real estate.

I'd think that if you have "decided to dump the house" it ought not to matter who is interested in buying it, whether "greedy relatives" or liars and cheats. You've given up, yet you're holding on for dear life...I guess that's just the human condition, but it seems a bit contradictory....that's all.

My situation is kind of the opposite. An in-law was supposed to be a cosigner but the company changed it to "buy for" at the last minute and the in-law was the only person named on the mortgage. If the in-law passed away, and my name is not on the mortgage but I'm the one who has been making the payments, what are my legal rights and responsibilities now?

Hi SLMH,

If your name is not mentioned on the mortgage docs, then you're not responsible for the mortgage payments. However, if you want to save the property, then you will be liable for refinancing the mortgage in your name and paying off the debt on time after the in-law passed away.

Thanks

i co signed for my father a loan because he could not be there to sign the papers due to being in a hospital bed.when the statement comes its only in his name.the place where we got the loan knew i was unemployed and i was seperated from my husband.if something happens to my dad will i have to pay the loan.

Hi kat!

Welcome to forums!

If your name is not mentioned on the mortgage docs, then you won't be liable for paying the mortgage debt. However, if you want to save the property, then you will have to keep on making the payments.

Feel free to ask if you've further queries.

Sussane

@Kat - are you sure you actually cosigned the loan, or did you just sign on your father's behalf using power of attorney?

If you actually cosigned the loan, you hold as much financial responsibility for the loan as your father does. If anything happens to him, you would need to make payments to keep the home.