Posted on: 09th Nov, 2007 08:21 am
My wife and I purchased a beautiful home in Newark, DE in mid May '07 with the help of my wife's father who only co-signed, but put no money towards the home in no way shape or form since day one. However his name is on the mortgage as sole owner, but on the deed is my wife as co-owner. We've been making payment late and on time, but not always the full amount, due to financial difficulties. The mortgage company calls wanting to speak to my father-in-law, but he does not reside in the house or better yet the state, and again he has not put one penny in the house just lent his signature and credit rating to secure the loan for the home. My wife and I have heard numerous ideas and such on what to do, but it's quite confusing when you hear so many possibilities and ideas. Should we; could we get her father off the mortgage completely? And if we could; how do we go about doing that? My wife's credit rating is poor as is mines, but there has to be something we could possibly do, before they foreclose on our dream home. Please help!!!...
EMBrown267,
Welcome to the forums!
My response is in no way an attack on you personally. But to me, and this is my opinion, your post is very one sided and I sense some animosity towards your wifes father. I understand your situation, and I am not trying to discount it, but there is more to this than just the house. Please read this post in full as my intentions are truly to help, not make you mad. That would just make a bad situation worse. And I would like to see you keep your home.
"My wife and I purchased a beautiful home in Newark, DE in mid May '07 with the help of my wife's father who only co-signed, but put no money towards the home in no way shape or form since day one. However his name is on the mortgage as sole owner, but on the deed is my wife as co-owner."
This statement is a contradiction. Again nothing personal but besides the payments you don't have true ownership yet. If the mortgage is in his name that is not co-signing. It is signing. He holds the responsibility for the mortgage and if the payments aren't made he will have the foreclosure on his credit.
"
We've been making payment late and on time, but not always the full amount, due to financial difficulties. The mortgage company calls wanting to speak to my father-in-law, but he does not reside in the house or better yet the state, and again he has not put one penny in the house just lent his signature and credit rating to secure the loan for the home.
"
Of course they call to speak to him it is his mortgage and house. Does he know that they are calling? Has he spoke to them about the situation? I think you are discounting exactly what he has done. He obligated himself to a mortgage that you guys are supposed to pay for. In my mind that is a huge gift, and a huge contribution. As a matter of fact it sounds like without that gift you wouldn't have gotten the house at all. Again I would like to point out that I am not trying to be mean, but think about it.
"My wife and I have heard numerous ideas and such on what to do, but it's quite confusing when you hear so many possibilities and ideas. Should we; could we get her father off the mortgage completely? And if we could; how do we go about doing that? My wife's credit rating is poor as is mines, but there has to be something we could possibly do, before they foreclose on our dream home. Please help!!!..."
Here is what you could do in an ideal situation.
1. Make the payments on time and in full. (I know, easier said than done) This is going to be the only way for you to qualify for a mortgage
(unless your problems are medical and then you may have other options).
2. Make them with a check from your same account always.
3. Work up some sort of sales agreement between your father and yourselves.
4. If there is equity in the home he can gift it to you making it much easier to qualify for your own mortgage. So instead of a 100% mortgage if there is 20% equity you would only have to qualify for an 80% mortgage.
5. Pay other bills on time. FHA allows you to use alternatives to what is in your credit report. If you have utilities, phone bills, cable etc. you can use them instead of credit report information.
6. Here is something most people don't realize. Once you fall behind on mortgage payments, they stay behind until you pay the overdue amount. Even if you start making full payments, the overdue amount shows that all payments are late. So you go from 30 to 60 to 90 to 120 to ? even if you had been paying the most recent payments on time. You have to catch up the overdue amount.
I have included an attachement that lists some agencies in Delaware that may be able to help. Of course your father in law will need to be contacting them with you. I do not have any experience with any of the organizations listed so I cannot endorse or verify any of what they do. It is your responsibility to check their credentials and validaty. If any of them do help please post back here to the forums so that maybe one day they can help someone else. I got this from a list for all 50 states and the listings for my locality are good so I assume the listings for the other are as well.
Let me know if there is anything else I can answer for you. And of course best of luck in your situation. This is happening more and more these days and if we can help one more person in a similar situation we will have done are part. So good luck.
Sincerely
Welcome to the forums!
My response is in no way an attack on you personally. But to me, and this is my opinion, your post is very one sided and I sense some animosity towards your wifes father. I understand your situation, and I am not trying to discount it, but there is more to this than just the house. Please read this post in full as my intentions are truly to help, not make you mad. That would just make a bad situation worse. And I would like to see you keep your home.
"My wife and I purchased a beautiful home in Newark, DE in mid May '07 with the help of my wife's father who only co-signed, but put no money towards the home in no way shape or form since day one. However his name is on the mortgage as sole owner, but on the deed is my wife as co-owner."
This statement is a contradiction. Again nothing personal but besides the payments you don't have true ownership yet. If the mortgage is in his name that is not co-signing. It is signing. He holds the responsibility for the mortgage and if the payments aren't made he will have the foreclosure on his credit.
"
We've been making payment late and on time, but not always the full amount, due to financial difficulties. The mortgage company calls wanting to speak to my father-in-law, but he does not reside in the house or better yet the state, and again he has not put one penny in the house just lent his signature and credit rating to secure the loan for the home.
"
Of course they call to speak to him it is his mortgage and house. Does he know that they are calling? Has he spoke to them about the situation? I think you are discounting exactly what he has done. He obligated himself to a mortgage that you guys are supposed to pay for. In my mind that is a huge gift, and a huge contribution. As a matter of fact it sounds like without that gift you wouldn't have gotten the house at all. Again I would like to point out that I am not trying to be mean, but think about it.
"My wife and I have heard numerous ideas and such on what to do, but it's quite confusing when you hear so many possibilities and ideas. Should we; could we get her father off the mortgage completely? And if we could; how do we go about doing that? My wife's credit rating is poor as is mines, but there has to be something we could possibly do, before they foreclose on our dream home. Please help!!!..."
Here is what you could do in an ideal situation.
1. Make the payments on time and in full. (I know, easier said than done) This is going to be the only way for you to qualify for a mortgage
(unless your problems are medical and then you may have other options).
2. Make them with a check from your same account always.
3. Work up some sort of sales agreement between your father and yourselves.
4. If there is equity in the home he can gift it to you making it much easier to qualify for your own mortgage. So instead of a 100% mortgage if there is 20% equity you would only have to qualify for an 80% mortgage.
5. Pay other bills on time. FHA allows you to use alternatives to what is in your credit report. If you have utilities, phone bills, cable etc. you can use them instead of credit report information.
6. Here is something most people don't realize. Once you fall behind on mortgage payments, they stay behind until you pay the overdue amount. Even if you start making full payments, the overdue amount shows that all payments are late. So you go from 30 to 60 to 90 to 120 to ? even if you had been paying the most recent payments on time. You have to catch up the overdue amount.
I have included an attachement that lists some agencies in Delaware that may be able to help. Of course your father in law will need to be contacting them with you. I do not have any experience with any of the organizations listed so I cannot endorse or verify any of what they do. It is your responsibility to check their credentials and validaty. If any of them do help please post back here to the forums so that maybe one day they can help someone else. I got this from a list for all 50 states and the listings for my locality are good so I assume the listings for the other are as well.
Let me know if there is anything else I can answer for you. And of course best of luck in your situation. This is happening more and more these days and if we can help one more person in a similar situation we will have done are part. So good luck.
Sincerely
hi embrown,
if your father-in-law is the cosigner, this means he may not be the owner necessarily and he is only obligated to pay once you guys default. so, he's not likely to put any money towards the payments now.
the mortgage company wants to talk to your father as he is co-signer, so if you are making late payments, the company might want your father-in-law to take over as he is the co-signer.
you can get your father-in-law off the loan but getting the cosigner off the loan isn't easy. you might have to refinance as negotiations won't do it here because you have been late several times. i understand that you have been in financial difficulty but this is how the industry moves.
now, how many late payments have you been through and what's the company saying? have they ever spoken of foreclosure? if they haven't you can just have a talk with them regarding an alternative payment plan.
regards,
jessica
if your father-in-law is the cosigner, this means he may not be the owner necessarily and he is only obligated to pay once you guys default. so, he's not likely to put any money towards the payments now.
the mortgage company wants to talk to your father as he is co-signer, so if you are making late payments, the company might want your father-in-law to take over as he is the co-signer.
you can get your father-in-law off the loan but getting the cosigner off the loan isn't easy. you might have to refinance as negotiations won't do it here because you have been late several times. i understand that you have been in financial difficulty but this is how the industry moves.
now, how many late payments have you been through and what's the company saying? have they ever spoken of foreclosure? if they haven't you can just have a talk with them regarding an alternative payment plan.
regards,
jessica
Hello EMBrown,
I am a bit confused. Is your wife the co-owner to the title of the property and the mortgage is in her name, where your father-in-law is a co-signer? Or, is the loan in your father-in-laws' name?
If the latter one is the case, then he is responsible for making the regular payments which you both are doing on his behalf. And if he is the co-signer, then he is called by the lender because your wife is defaulting.
I think it will be difficult for you to refinance and take away the co-signer's name as you are already making late payments and the lender might feel insecure.
I am a bit confused. Is your wife the co-owner to the title of the property and the mortgage is in her name, where your father-in-law is a co-signer? Or, is the loan in your father-in-laws' name?
If the latter one is the case, then he is responsible for making the regular payments which you both are doing on his behalf. And if he is the co-signer, then he is called by the lender because your wife is defaulting.
I think it will be difficult for you to refinance and take away the co-signer's name as you are already making late payments and the lender might feel insecure.
Hello EMBRown,
I am a mortgage professional in Delaware. Like the others above, I am somewhat confused about your post. If it would be easier for you to explain, I'd be happy to speak with you on the phone to go over your loan papers and discuss options you may have.
It does appear that you might need some intervention with your current lender. I would highly recommend that you contact one of the counselors on the list Eric provided. Below is also details on free upcoming seminars in DE that you might want to consider attending. If you do go, please take all your loan documents with you. Available at the workshop will be attorneys, lender representatives to assist with modification (only if your lender is present) and representatives from many of the agencies Eric provided.
-------------------------------------------------------
FREE Foreclosure Prevention & Homeownership Workshops
CALL (302) 739-4235 to register!
For Delaware residents who have missed a mortgage payment or who have an adjustable-rate or option ARM mortgage
For Northern Delaware Residents:
Tuesday, November 20, 2007
7:00 p.m. - 9:00 p.m.
Interfaith Community Housing
2 South Augustine Street
Wilmington, DE 19804
(302) 995-7428
For Southern and Central Delaware Residents:
Tuesday, November 27, 2007
7:00 p.m. - 9:00 p.m.
NCALL Research, Inc.
363 Saulsbury Road
Dover, DE 19904
(302) 678-9400
I am a mortgage professional in Delaware. Like the others above, I am somewhat confused about your post. If it would be easier for you to explain, I'd be happy to speak with you on the phone to go over your loan papers and discuss options you may have.
It does appear that you might need some intervention with your current lender. I would highly recommend that you contact one of the counselors on the list Eric provided. Below is also details on free upcoming seminars in DE that you might want to consider attending. If you do go, please take all your loan documents with you. Available at the workshop will be attorneys, lender representatives to assist with modification (only if your lender is present) and representatives from many of the agencies Eric provided.
-------------------------------------------------------
FREE Foreclosure Prevention & Homeownership Workshops
CALL (302) 739-4235 to register!
For Delaware residents who have missed a mortgage payment or who have an adjustable-rate or option ARM mortgage
For Northern Delaware Residents:
Tuesday, November 20, 2007
7:00 p.m. - 9:00 p.m.
Interfaith Community Housing
2 South Augustine Street
Wilmington, DE 19804
(302) 995-7428
For Southern and Central Delaware Residents:
Tuesday, November 27, 2007
7:00 p.m. - 9:00 p.m.
NCALL Research, Inc.
363 Saulsbury Road
Dover, DE 19904
(302) 678-9400
I agree with Eric as usual :) In fact I am looking at this situation and it has "no responcibility" written all over it. Your credit is poor, your wife's credit is poor and your father in law sighns for your mortgage taking on the full responcibility for the loan. You closed in May wich means your first payment was July 1st. In 5 month that you have had the responcibility of the home payments you have managed to make multiple late payments. This means you are ruining your father in law credit as a thanks for him giving you the opportunity of home ownership.
It is my advice that you contact him immediately, appologise for this and figure out some way to make this right. If you cannot make on time payments in the first six months that you live in this home how can you take on the 30yr mortgage? You obviously were not ready for this responcibility and your hurting the very person who tried to help you.
It is my advice that you contact him immediately, appologise for this and figure out some way to make this right. If you cannot make on time payments in the first six months that you live in this home how can you take on the 30yr mortgage? You obviously were not ready for this responcibility and your hurting the very person who tried to help you.
