Posted on: 19th Jan, 2010 10:33 am
Back in 2003, I received a mortgage using my mother in law as a co borrower. At the time, neither my credit or my wife's credit was sufficient to get us a decent rate, so we used my mother in law's excellent credit to get a good rate. Lately, my wife and I have fallen a couple of months behind on our mortgage payments. The mortgage was originally issued through the Principal, which was then taken over by CitiMortgage. My mother in law just received a notice from Citibank telling her that they are reducing her credit card limit from $25,000 to only $800 because the mortgage is 2 or 3 months behind. She is furious with us and is now demanding that she either be removed from the mortgage or that we sell the house within 3 months. It is not feasible for us to sell the house in that short amount of time and the last thing we want is to have her credit negativey affected because of our dire situation. What I am asking is if is possible to have my mother in law removed from the mortgage and just have the loan left in my name alone. Thank you very much.
chig you will have to speak with citimortgage to assess that possibility. the likelihood, however, is slim, particularly given your delinquent status. from their standpoint, why release a party from the obligation when payments are not coming in on time? it would be counter-productive for them to do it.
unfortunately, her credit is going to be affected by your unfortunate situation, simply because she's the cosigner. hopefully, you'll be able to get back on track shortly and catch up. meanwhile, a reduction in credit limit to $800 is good for your mother in law. otherwise, she could find herself overspending.
unfortunately, her credit is going to be affected by your unfortunate situation, simply because she's the cosigner. hopefully, you'll be able to get back on track shortly and catch up. meanwhile, a reduction in credit limit to $800 is good for your mother in law. otherwise, she could find herself overspending.