Posted on: 19th Jul, 2006 10:32 pm
My sister and I purchased a house together...she wasn't able to get financed so iI am the primary and she is the co-borrower..within the first month she kicked me out and asked me to sign a quit-claim...I did not knowing that I am still responsible for the loan..she works in the mortgage fiel so I just thought it was a loop-hole. It has now been 7 months and she has been late 3 times. It hasn't been past 30 days so it hasn't hit my credit...however she is struggling and I am afraid it will reflect on me..What advise do you have? What are my options? Can I force her to sell? I do not want the house, I just want to be free and clear from financial responsibility
Signed,
Help
Signed,
Help
Hi,
It's sad to know about your situation. But don't worry. Let's find out a way to get through the problem. The fact is that you could have seeked a release from your cosignership provided your sister hasn't made late payments. But now that she has been in default thrice, the lender won't allow you to get out of the liability.
In such a case, you should request your sister to fulfill the obligations of the mortgage and when the payments are regular again, you can ask the lender for a release of cosignership. If your sister doesn't agree to it, then see if you can convince her to sell off the property. If this also do not work out, then I am afraid, you will have to make your share of the payments.
Do get back to us if there is any other query.
Caron.
It's sad to know about your situation. But don't worry. Let's find out a way to get through the problem. The fact is that you could have seeked a release from your cosignership provided your sister hasn't made late payments. But now that she has been in default thrice, the lender won't allow you to get out of the liability.
In such a case, you should request your sister to fulfill the obligations of the mortgage and when the payments are regular again, you can ask the lender for a release of cosignership. If your sister doesn't agree to it, then see if you can convince her to sell off the property. If this also do not work out, then I am afraid, you will have to make your share of the payments.
Do get back to us if there is any other query.
Caron.
my sister is not being cooperative....she told me that it would be 3 years before she can refinance...and there is a pre-pay penalty. she won't sell and she is treating me like she doesn't care. the truth is that she doesn't want to be behind..she simply can't afford it without a roomate. and of course because we are family, we had verbal agreements and that doesn't mean anything. she tricked me into signing the quit qlaim..not to mention she was unwilling to give me any paperwork on the loans and 2 days before we signed a mortgage protection and had each other listed for our benefactor. she has all of the info and i don't know what company we went through.as for her, she told me she was doing me a favor and continueing to pay my portion of that ($33) a month. not sure if she really is but i would like to take her off as my beneficerary. she still owes me half of my money i put down and get this..the week before we had a house warming party and collected $1,000. half of this money was given to me we were going put our money together to buy our refrig. upon my 2 year verbal lease agreement, i would receive 25% of any equity on house. since she threw me out, i asked for my portion she said that money goes to the house. she gave me 1/2 of my money back that i put down on house and told me i would get the rest back upon moving and never got it...is it time for a lawyer to get involved?
Hi,
Welcome back.
I think you should consult a lawyer and explain your problem. Be clear to him and clarify all your doubts regarding this issue. You should be given your share of amount and as your sister is not willing to return your cash, it's time for you to consult a lawyer.
Thanks,
Caron.
Welcome back.
I think you should consult a lawyer and explain your problem. Be clear to him and clarify all your doubts regarding this issue. You should be given your share of amount and as your sister is not willing to return your cash, it's time for you to consult a lawyer.
Thanks,
Caron.
will i be responsible for pre-pay penalties?
And what if she is unable to refi. Can I force her to sell the house? If so what if can't sell for what we put into it.
And what if she is unable to refi. Can I force her to sell the house? If so what if can't sell for what we put into it.
Hi,
You will be responsible for it only when your sister is not willing to do so. Or else, both of you may contribute towards the payment of penalty. Again, it's upto your sister to decide.
Now, if she is unable to refinance, you cannot force her to sell the property since you are no longer the owner. Just take a second opinion from your lawyer before you take any further step.
Thanks,
Caron.
You will be responsible for it only when your sister is not willing to do so. Or else, both of you may contribute towards the payment of penalty. Again, it's upto your sister to decide.
Now, if she is unable to refinance, you cannot force her to sell the property since you are no longer the owner. Just take a second opinion from your lawyer before you take any further step.
Thanks,
Caron.