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chicha19 · Joined: 25 Oct 2009 Posts: 2 1.73 Dollars($)

My mother co-signed a mortgage for me because it was a very large loan and one I couldn't have gotten a bank to approve, with my relatively small income.

Since that time, I've had very good credit and have never once missed a payment. And I've put together tenants to help me meet the mortgage payments.

Since I've had several years of good credit, might I be able to have a chance of assuming this debt on my own, assuming I want to take my mother off of the loan?

Since she is not in good health and could die, if that happens, god forbid, how might that affect the mortgage? Would that make my family or estate liable for this debt?

With the new opportunities for loan modifications, given that I've got financial hardships, would I have a good chance of getting a loan modification with my mother as co-signer off the loan?

And if I did apply for a loan modification, might I possibly make my mother even more financially exposed by re-applying for another loan?

gmakerley · Posted: Sun Oct 25, 2009 8:09 pm Post subject:

wow...you ask about an assumption yet in the next breath ask about modification. those two things would probably be mutually exclusive. if you qualify to assume the loan (which i don't think is viable because it's your loan to begin with), then you'd probably not qualify for a modification (and vice versa). if your mom dies, her obligation to pay that loan dies with her. the family is not at risk, and your obligation doesn't change either. you still are obligated no matter what.

if you seek a modification at this point, with her as cosigner, she'd have to be a party to it, i believe. i don't know how that might influence your lender of course...financial exposure for her would be no more than what's there now - wouldn't that be the case?

Guest

Thank you. Appreciate your advice.

When you say, "when your mother dies, her obligation to pay that loan dies with her." So are you saying there wouldn't be a case of frozen assets, or endangerment of my siblings' inheritance? Is that the case in all states....or does it matter from state to state?

Would it be advisable to see an estate lawyer, or a real estate lawyer, for specific advice?

Thanks again!

gmakerley · Posted: Thu Oct 29, 2009 7:37 am Post subject:

you stated that your mom is a cosigner, and that you are the primary borrower. your obligation does not change in the event of her death, but the lender's got no claim on her assets following her death.

yes, a lawyer is a good idea.

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What are the responsibilities of a co-signer on a mortage loan, and what happens if she dies?