Posted on: 19th Nov, 2009 10:00 pm
Six years ago our daughter and husband wanted to buy a house, but his credit was poor, and since they were both responsible, working young couple my husband decided to co-sign. Shortly thereafter they got divorced. She married mr. irresponsible and became mrs. irresponsible, totally not what we had signed up for. Now, several years later she's still in the house, we thought she had gotten a mortgage modification and things were going along, until my husband, who has good credit, was turned down for credit for a mattress. some investigating revealed the mortgage co. has listed the co-signed propery on his credit report as going into foreclosure. He had received absolutely no notification of any problems, despite having dealt with the mortgage company once before where a problem was straightened out and we specifically asked them if there was a "late" payment to please let us know. Now it's going into foreclosure and this is how we found out. Is there anyway to get out of this as a co-signer with change in circumstances and no notifications? HELP!
oh boy, i hate to be the messenger on bad news but, they did notify someone, and that was your daughter. the mortgage company's obligation has been met. when your husband signed all those papers he basically said he would be responsible to make sure the payments were being made. typically only one statement gets sent out, the way the lender sees it, since you said you were taking on the obligation you would also take on the responsibility to follow up on its status. the first time your daughter got into trouble should have been a red flag.
the tragedy is that your daughter who you thought you were helping let you get on a sinking ship and threw away the life jacket. had you known sooner this issue could have been avoided and now it may be too late. other than paying the amount owed, selling the home before foreclosure totally kicks in is an option. if it goes all the way to foreclosure this will be on his credit report and will affect his scores and ability to buy and refinance for a good 3 years if not more. helping your daughter may be the last thing you want to do , but in order to help your husband, can you buy the home before it forecloses and then rent it out or resell it?oh boy
the tragedy is that your daughter who you thought you were helping let you get on a sinking ship and threw away the life jacket. had you known sooner this issue could have been avoided and now it may be too late. other than paying the amount owed, selling the home before foreclosure totally kicks in is an option. if it goes all the way to foreclosure this will be on his credit report and will affect his scores and ability to buy and refinance for a good 3 years if not more. helping your daughter may be the last thing you want to do , but in order to help your husband, can you buy the home before it forecloses and then rent it out or resell it?oh boy
a well-written response, sonja...yes, i agree that the responsibility for follow-up was not on the lender's part, but on your husband's shoulders.
and, of course, selling the home, if that's in the cards at all, is a viable solution to the ultimate act of a foreclosure.
oh boy, indeed.
and, of course, selling the home, if that's in the cards at all, is a viable solution to the ultimate act of a foreclosure.
oh boy, indeed.
