Posted on: 02nd Jun, 2009 01:54 pm
About a year ago my wife and I unfortunately cosigned on a home loan for my son. He lost his job and has not been able to make payments apparently for quite some time. I just got a letter in the mail today saying that the bank has filed a law suit against him, my wife, and myself. The letter states that the lender is requesting the master commissioner to sell the home and that we would be responsible for the amount left over if the sell doesn't bring enough money plus attorney fees.
Let's say it comes up 30,000 dollars short on the sell, could the lender force the sale of my home even though my mortgage is not with them and I am up to date on my mortgage payments and always have been?
Let's say it comes up 30,000 dollars short on the sell, could the lender force the sale of my home even though my mortgage is not with them and I am up to date on my mortgage payments and always have been?
Hi hunter,
As co-signers you are as much responsible for the loan as your son is. If your son defaults on the loan and the house goes into foreclosure, your credit will take a hit. You will also be responsible for the deficiency amount arising out of the sale of the house. But if you stay current on your mortgage, this foreclosure will not affect the house you and your wife own. The lender cannot sell this house to recover the deficient amount. However, they may put a lien on your house.
As co-signers you are as much responsible for the loan as your son is. If your son defaults on the loan and the house goes into foreclosure, your credit will take a hit. You will also be responsible for the deficiency amount arising out of the sale of the house. But if you stay current on your mortgage, this foreclosure will not affect the house you and your wife own. The lender cannot sell this house to recover the deficient amount. However, they may put a lien on your house.
thanks jenkin7. we have no other options as we are both retired and don't have even close to enough money to make the mortgage payments on the other house. not worried about my credit at this point in my life as long as i have my house to still live in.
thanks again.
thanks again.
Hi
Jenkin is right. The foreclosure on your son's house will not affect the house you own. The mortgage company that holds your son's mortgage wil never be able to foreclose on your property. If you keep making the payments on your mortgage, your house will remain safe.
Jenkin is right. The foreclosure on your son's house will not affect the house you own. The mortgage company that holds your son's mortgage wil never be able to foreclose on your property. If you keep making the payments on your mortgage, your house will remain safe.