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mamcny
Guest
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 Posted: Thu Mar 18, 2010 6:52 am Post subject: What happens to the co-signer/ |
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My sister-in-law and her husband have defaulted on their mortgage and my mother-in-law and father-in-law co-signed the loan for them.
If the house goes into foreclosure,which may have already happened, what will happen to my in-laws?
They'll be held responsible for the amount owed, correct?
What happens if they can't pay it?
I'm worried for my in-laws financial situation and their retirement!
Thanks in advance for any help!
_________________
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 gunzijjistaff
Joined: 07 Apr 2009
Posts: 629
7.56 Dollars($)
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| Posted: Thu Mar 18, 2010 9:49 am Post subject: |
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Hi,
Your sister in law will loose their home after forclosure. They will not be responsible for own amount because lender will sell off this house to recover loan amount. Your sisters & her husbands credit score will effected nagitavely.
Thanks & regards.
gunz.ijjistadf  |
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smithsussane
Joined: 18 Sep 2008
Posts: 5825
Location: Alaska
256.25 Dollars($)
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| Posted: Fri Mar 19, 2010 12:17 am Post subject: |
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Hi mamcny!
Welcome to forums!
As your mother-in-law and father-in-law are cosigners of the property, they would face similar implications as your brother-in-law and sister-in-law after the foreclosure. Their credit would be lowered by 250 points and they would be equally responsible for paying off the deficient balance resulting from the property sale. If they can't pay the deficient balance, the lender will be able to place a lien on their property or can garnish their savings account.
Feel free to ask if you've further queries.
Sussane |
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raymond
Community Expert
Joined: 03 Jul 2009
Posts: 876
Location: Irvine, CA
135.34 Dollars($)
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| Posted: Sat Mar 20, 2010 9:22 am Post subject: |
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Being a co-signer means they're just as responsible for the Note as your in-laws. Your in-laws have ruined everybodys credit and impacted retirement negatively.
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Raymond
www.SuperJumboReverseMortgage.com |
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