Posted on: 24th Jun, 2010 07:29 pm
Hi everyone,
Let me first mention that I am unfamiliar with all the legal terms of mortgages, so please bare with me. In 2006, my dad was a co-signer for a home to help out my aunt (i believe the title is under them both), which consisted of a 1st and 2nd mortgage. The 1st mortgage was defaulted and therefore foreclosed (if my terminology is correct). My mom and dad recently ran their credit because they wanted to get pre-approved for a home and for some reason, my mom is a 'co-borrower' on both the 1st and 2nd mortgages that were from my aunt's home. Don't ask me why or how, my dad did something stupid and without my mom's consent.
My biggest concern is that based on the credit report the 2nd mortgage for 150k has been sent to collections this past February (for some reason the 2nd mortgage wasn't closed on?). How can I help my parents with this situation, most importantly my mom? How do i remove my mom from this whole mess? I'm afraid collections will try to take our home (since our home is under my dad and mom)? Is it possible to remove my mom as a co-borrower so she isn't financially or credit liable? What should my dad do in order to rid that 150k 2nd mortgage that my aunt screwed my family over with? Please advise, I am considering consulting a lawyer.
Let me first mention that I am unfamiliar with all the legal terms of mortgages, so please bare with me. In 2006, my dad was a co-signer for a home to help out my aunt (i believe the title is under them both), which consisted of a 1st and 2nd mortgage. The 1st mortgage was defaulted and therefore foreclosed (if my terminology is correct). My mom and dad recently ran their credit because they wanted to get pre-approved for a home and for some reason, my mom is a 'co-borrower' on both the 1st and 2nd mortgages that were from my aunt's home. Don't ask me why or how, my dad did something stupid and without my mom's consent.
My biggest concern is that based on the credit report the 2nd mortgage for 150k has been sent to collections this past February (for some reason the 2nd mortgage wasn't closed on?). How can I help my parents with this situation, most importantly my mom? How do i remove my mom from this whole mess? I'm afraid collections will try to take our home (since our home is under my dad and mom)? Is it possible to remove my mom as a co-borrower so she isn't financially or credit liable? What should my dad do in order to rid that 150k 2nd mortgage that my aunt screwed my family over with? Please advise, I am considering consulting a lawyer.
hi m!
welcome to forums!
i must say that your parents are stuck in a difficult situation. though your aunt's property was foreclosed by the lender, may be the second mortgage lender was not able to recover his dues. thus, he charged off the account and assigned it to a collection agency. if your parents want to get out of this mess, they will have to contact the collection agency in order to either get the dues forgiven or pay it off.
feel free to ask if you've further queries.
sussane
welcome to forums!
i must say that your parents are stuck in a difficult situation. though your aunt's property was foreclosed by the lender, may be the second mortgage lender was not able to recover his dues. thus, he charged off the account and assigned it to a collection agency. if your parents want to get out of this mess, they will have to contact the collection agency in order to either get the dues forgiven or pay it off.
feel free to ask if you've further queries.
sussane