Posted on: 28th Oct, 2009 08:02 am
i live in san angelo, texas, and purchased a home 6 yrs ago. there was a co-signer on the mortgage loan and he just signed a warranty deed so that the property will now be in my name only. he is about to file bankruptcy and i believe his home in california where he resides is going into foreclosure.
since his name is still on the mortgage loan from chase bank will this affect my credit? i do not think i will qualify to refinance the home since i only work part time but i have never been late on a payment and my credit is excellent.
what is the proper procedure that i have to follow with the mortgage loan?
thank you so much.
since his name is still on the mortgage loan from chase bank will this affect my credit? i do not think i will qualify to refinance the home since i only work part time but i have never been late on a payment and my credit is excellent.
what is the proper procedure that i have to follow with the mortgage loan?
thank you so much.
Hi Jeanie,
Signing a warranty deed have only removed the cosigner from the property docs but he would still be considered liable for the mortgage if you do not refinance it.
Transfer of property just before bankruptcy can be considered as fraudulent. The bankruptcy trustee may cancel the transfer and bring back the property in the cosigner's estate. I would suggest you to contact an attorney and take his opinion in this regard. However, it's true that your credit won't be affected if the cosigner files bankruptcy.
Signing a warranty deed have only removed the cosigner from the property docs but he would still be considered liable for the mortgage if you do not refinance it.
Transfer of property just before bankruptcy can be considered as fraudulent. The bankruptcy trustee may cancel the transfer and bring back the property in the cosigner's estate. I would suggest you to contact an attorney and take his opinion in this regard. However, it's true that your credit won't be affected if the cosigner files bankruptcy.
Thank you so much for your response. I did have an attorney here in TX do the paperwork for this deed transfer and have been tryin since Aug 2007 to have him sign off. he did sign the original paperwork and the notary crossed out the 2007 date so hopefully that will show it was not just due to his filing BK in the next several months.
This is all confusing but hopefully it won't come back to bite me as I have been trying to follow proper procedure.
Thanks again, Jeanie
This is all confusing but hopefully it won't come back to bite me as I have been trying to follow proper procedure.
Thanks again, Jeanie
the notary "crossed out the 2007 date" on the deed? i don't get that reference. if that's true, though, how does that effect what's happening currently?
at any rate, your credit ought not to be affected at all inasmuch as you're not a signer on his loan.
at any rate, your credit ought not to be affected at all inasmuch as you're not a signer on his loan.
