Posted on: 04th Aug, 2009 10:01 pm
two years ago i naively co-signed a mortgage for a co-worker. she defaulted on the loan july 2008, and i received court papers for a foreclosure proceeding may of this year.
i met with her and the lawyer that is supposed to be representing "us", although i feel that the lawyer is representing her best interests instead.
the lawyer said i have two options- to modify the loan with both mine and my co-worker's name on it. my co-worker promised me that she will refinance the mortgage into her name only by the end of this year.
or we would be foreclosed on, and my credit would be completely ruined, and i'd likely face bankruptcy since the loan is for about $80,000 more than the home is worth.
she never mentioned a deed in lieu of foreclosure, or a short sale. i assume it is because my co-worker wants to keep the house.
my question is, would refinancing really be the best option? is there anything i could make my co-corker sign, that would state if she doesn't refinance by x date she has to sell the house?
could i sign a deed in lieu of without her consent, and leave her holding the bag? or since her name is on the mortgage/deed, would we both have to sign?
please help, i co-signed for this without my wife's knowledge and she is going to divorce me if this all goes south.
i met with her and the lawyer that is supposed to be representing "us", although i feel that the lawyer is representing her best interests instead.
the lawyer said i have two options- to modify the loan with both mine and my co-worker's name on it. my co-worker promised me that she will refinance the mortgage into her name only by the end of this year.
or we would be foreclosed on, and my credit would be completely ruined, and i'd likely face bankruptcy since the loan is for about $80,000 more than the home is worth.
she never mentioned a deed in lieu of foreclosure, or a short sale. i assume it is because my co-worker wants to keep the house.
my question is, would refinancing really be the best option? is there anything i could make my co-corker sign, that would state if she doesn't refinance by x date she has to sell the house?
could i sign a deed in lieu of without her consent, and leave her holding the bag? or since her name is on the mortgage/deed, would we both have to sign?
please help, i co-signed for this without my wife's knowledge and she is going to divorce me if this all goes south.
Sounds like you really screwed up! It's possible your getting what you deserve.
As the loan is already in default, you won't be able to refinance the loan. Rather you will have to modify the loan along with the primary borrower. Once the loan is modified and the primary borrower is paying the mortgage dues regularly, then the lender can refinance the loan. You can sign an agreement with the primary borrower that she will have to refinance the loan within a given time period or else you would sell off the property.
As far as deed in lieu is concerned, you won't be able to go for it alone. You would require the permission of your primary borrower.
As far as deed in lieu is concerned, you won't be able to go for it alone. You would require the permission of your primary borrower.
how nice of you to post that nonsense, garry. i hope your rudeness doesn't come home to roost on you, though.
confused and (you let yourself be) used, you'll need to negotiate with your friend to come to a reasonable resolution. since you said you met with "the lawyer" - which, from your comment, is not a lawyer you had any input in selecting - and that meeting was apparently not all that productive; you may want to retain your own lawyer.
and i know this has naught to do with your mortgage co-signing situation per se, but i have to believe it would be a good decision to break the news to your wife yourself, rather than have her go to the mailbox and learn that you are being named in a foreclosure suit on a property she knows nothing about. you think she'll divorce you when she finds out? if she finds out in some way other than you breaking the news, it'll be like the scene in "waiting to exhale" when angela bassett torched her husband's belongings. beware!
confused and (you let yourself be) used, you'll need to negotiate with your friend to come to a reasonable resolution. since you said you met with "the lawyer" - which, from your comment, is not a lawyer you had any input in selecting - and that meeting was apparently not all that productive; you may want to retain your own lawyer.
and i know this has naught to do with your mortgage co-signing situation per se, but i have to believe it would be a good decision to break the news to your wife yourself, rather than have her go to the mailbox and learn that you are being named in a foreclosure suit on a property she knows nothing about. you think she'll divorce you when she finds out? if she finds out in some way other than you breaking the news, it'll be like the scene in "waiting to exhale" when angela bassett torched her husband's belongings. beware!
