Mortgage Cosigner Legal Help

[wyogoat]

Couldn't finance before, now credit is worse.

Good point. Maybe the fact they can’t refi would force their hand to walk away from it and allow OP to take over the loan on his own.
In the end maybe @19hunt92 can come out ahead if the others choose to be adults…

 

[fmyth]

I was thinking It gets the deadbeat off the deed so he can deal with the bank but it won’t get the deadbeat off the bank note.

If you "get him off the deed" the lender will call the note via the due on sale clause. I've seen it happen many many times in my 23 years as a real estate broker. The OP needs an attorney.

 

[fmyth]

I think beating him to death was the only viable option...
Cut your losses. Tell the bank to go ahead and foreclose.

Not a good idea if the mortgage is in a Recourse State. Lender could foreclose and then get a deficiency judgement against the OP. OP could end up with ruined credit and garnished wages.

 

[KenLee]

Not a good idea if the mortgage is in a Recourse State. Lender could foreclose and then get a deficiency judgement against the OP. OP could end up with ruined credit and garnished wages.

What's his better option? Deficiency goes up every month.
Garnished wages? What state actually allows such?
OP ruined his credit when he signed. That's already accomplished.

 

[wind gypsy]

I understand that OP knows this now, but this is for benefit of others.
I've been asked to co-sign multiple times.
My response is always"a co-signer is a fool with a pen. Go find yourself a fool."

On a mortgage without specific additional inked agreements to cover you, for sure.

Sure glad my parents did for me when there was near zero risk for them when I was young on a $9k pickup and likely other small things i cant remember.

 

[fmyth]

What's his better option? Deficiency goes up every month.
Garnished wages? What state actually allows such?
OP ruined his credit when he signed. That's already accomplished.

If the OP has assets and or a job he needs an attorney. If it were me I would make the mortgage payments to preserve my credit and prevent foreclosure and sue the relative to remove them from the deed and get possession or force the sale. Either way its not going to be fast, cheap or pretty.

OP's profile shows he is in IN which is a recourse state. Not sure if the property is in IN but regardless OP needs an attorney ASAP.

Indiana General Assembly

Website for Indiana's General Assembly

iga.in.gov

 

[Rich M]

I have no idea and nothing to add, other than don’t let the missed payments keep happening. I’d be in contact with a lawyer asap and a for sale sign in the yard as quick as I knew what the legalities of it were.

This is nicer than i could say.

Get out of the situation as quickly as you can. BiL should be took out behind the woodshed and beaten.

You dont do this crap to family (them to you).

 

[KenLee]

If the OP has assets and or a job he needs an attorney. If it were me I would make the mortgage payments to preserve my credit and prevent foreclosure and sue the relative to remove them from the deed and get possession or force the sale. Either way its not going to be fast, cheap or pretty.

OP's profile shows he is in IN which is a recourse state. Not sure if the property is in IN but regardless OP needs an attorney ASAP.

Indiana General Assembly

Website for Indiana's General Assembly

iga.in.gov

You can't as a co-signer just sue to take possession. Sheeze

 

[AZ8]

Being a co-signer doesn’t give you rights to the property. You are only the financial guarantor.

Hate to see this. Family and money is like oil and water. Hope you get this figured out.

 

[KenLee]

If the OP has assets and or a job he needs an attorney. If it were me I would make the mortgage payments to preserve my credit and prevent foreclosure and sue the relative to remove them from the deed and get possession or force the sale. Either way its not going to be fast, cheap or pretty.

OP's profile shows he is in IN which is a recourse state. Not sure if the property is in IN but regardless OP needs an attorney ASAP.

Indiana General Assembly

Website for Indiana's General Assembly

iga.in.gov

Recourse doesn't mean garnishment...at least nowhere I've read the statutes

 

[KenLee]

Good point. Maybe the fact they can’t refi would force their hand to walk away from it and allow OP to take over the loan on his own.
In the end maybe @19hunt92 can come out ahead if the others choose to be adults…

No one in this situation has chosen to be an adult

 

[19hunt92]

If the OP has assets and or a job he needs an attorney. If it were me I would make the mortgage payments to preserve my credit and prevent foreclosure and sue the relative to remove them from the deed and get possession or force the sale. Either way its not going to be fast, cheap or pretty.

OP's profile shows he is in IN which is a recourse state. Not sure if the property is in IN but regardless OP needs an attorney ASAP.

Indiana General Assembly

Website for Indiana's General Assembly

iga.in.gov

I'll send you a PM, I get the idea of what you're saying but not following the lingo plus there are more specific details here that I could use in my favor maybe

 

[KenLee]

On a mortgage without specific additional inked agreements to cover you, for sure.

Sure glad my parents did for me when there was near zero risk for them when I was young on a $9k pickup and likely other small things i cant remember.

No additional agreements will cover you on a mortgage. The loan instrument and state foreclosure laws control

 

[wind gypsy]

No additional agreements will cover you on a mortgage. The loan instrument and state foreclosure laws control

You couldn't strike up a separate legal partnership agreement based upon the purchase with terms on how things will be addressed in different circumstances? I know guys who buy recreational land in a partnership set up some kind of LLC or legal agreement to address these types of problems.

 

[KenLee]

You couldn't strike up a separate legal partnership agreement based upon the purchase with terms on how things will be addressed in different circumstances? I know guys who buy recreational land in a partnership set up some kind of LLC or legal agreement to address these types of problems.

Most states, foreclosure laws trump all in getting actual owner/occupiers out

 

[KenLee]

High level, we (wife and I) are tied into a mortage of an in-law, to me, that has gone south. Understand the idea that was signed into and have dealt/learned from that to begin with.
Now the current situation, we have been pushing for the in-law to refianance for over a year now as that was the agreement. Obvioulsy that has not happened and we (I) have learned that multiple payments have been missed. Fast forward, now i am being fully involved in this as it's getting to be a sticky family issue now, love these.

So to preset the question i am about to ask, I have learned that 45% of the payments have been missed, wifes credit is crap, we have not paid a single cent out onto this mortgage at this time. I addressed this with the other husband on the in-law side thinking a man to man discussion would be understood and the issue needs to be addressed proptly.
Fast forward to Christmas and i get a box thrown at me as this husband would rather throw hands at family christmas than keep this between 2 individuals and simple. All was avoided since I de-escalated the situation between us but now there is tension in the whole family.

SO now i ask, what legal options are there as a co-signer on a mortgage that an individual can take to get off of or at least put pressure on the mortgage owner? Can an individual sue for anything? Can we force anything (threaten forclosure?)
There is a lot of information to this but curious if anyone knew high level mortgage lawsuit stuff and if there is more info, feel free to send a PM.

ALSO, glad i could add to the holiday drama that you guys get to peak in on now Read and comment at your own leisure and hope someone has more information than what i can search up online

Just an fyi: most real estate lawyers are high volume paper pushers that have their own title insurance companies to charge you more at closings that their own malpractice insurance should cover.
They don't have any desire to do real legal disputes and fight anyone in Court.
Find a lawyer that also handles real estate construction disputes because those are real dogfights, and you need a fighting lawyer. You need to hit your inlaws with whatever dogfight best helps your situation in your state.

 

[svivian]

Being a co-signer doesn’t give you rights to the property. You are only the financial guarantor.

Depends on how the loan was written as Cosigners certainly can be on the deed. Now if the OP cosigned without being put on the deed..... then very foolish.

 

[fmyth]

Recourse doesn't mean garnishment...at least nowhere I've read the statutes

Recourse means that the lender has the right to seek a deficiency judgement for any losses they have incurred. This would include penalties, interest, force placed insurance, taxes and legal fees plus any loss they take selling the house below the outstanding loan balance. They would then sell the judgement to a debt collector or pursue collections themselves. Wage garnishment is just one of the tools used to collect on a judgement.

 

[KenLee]

Recourse means that the lender has the right to seek a deficiency judgement for any losses they have incurred. This would include penalties, interest, force placed insurance, taxes and legal fees plus any loss they take selling the house below the outstanding loan balance. They would then sell the judgement to a debt collector or pursue collections themselves. Wage garnishment is just one of the tools used to collect on a judgement.

I don't know of any states that allow wage garnishment for a mortgage judgment.
I do know what a deficiency judgment is, that's why I say push for as quick a foreclosure as possible. Get the deadbeats out while housing prices are still high, and prevent another 18 months of missed payments. No way I'd make payments to extend the misery.

 

[KenLee]

Recourse means that the lender has the right to seek a deficiency judgement for any losses they have incurred. This would include penalties, interest, force placed insurance, taxes and legal fees plus any loss they take selling the house below the outstanding loan balance. They would then sell the judgement to a debt collector or pursue collections themselves. Wage garnishment is just one of the tools used to collect on a judgement.

Lender is much more likely to waive your deficiency judgement if you work with them and cooperate to help them get access to their collateral.