Responsibility of Cosigner of Equity Loan
Responsibility of Cosigner of Equity Loan
My sister had a cosigner on an equity loan, but not on the title of her home. My sister passed away and left the home to my brother & I. The cosigner says since we inherited the home it is our responbility to pay the equity loan and not her. Is she correct, will the house have to be sold to pay the equity loan or is she responsible to pay it and not us? There was no cash left in the estate. She did have a checking account that was left as an ITF to the cosigner. My sister wanted this to be used to pay her bills ($15,000), but the cosigner (Executrix) says it is her money and she doesn't have to use it to pay off the equity loan. The equity loan is $11,000, so my sister's checking account would have paid it off, but the cosigner (Executrix) wants the money instead. We live in New Hampshire. Thank you for your help.
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A cosigner is a guaranter who guarantees that the loan will be repaid in case the borrowers default on the loan. I am doubtful whether the cosigner has any right on the money of your sister. I would advise you to consult an attorney.
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If the co-signer's name is mentioned on the mortgage docs, then that person is liable for the payments. Unless your name is on the mortgage docs, you won't have to pay the loan.