Can bankruptcy or anything (besides death) remove me from the loan since I am the co-signer?
Asked on Apr 13th, 2013 on Foreclosures - California
More details to this question:
I am in a situation with an old friend of mind, apparently we (all three of us) signed on a mortgage. A year later my friend (#2) dies and he is off the deed. Now it leaves just him and me. I find out later that the house goes into foreclosure. He did a Modification with B of A without telling me or notifying me. Everything was done behind my back, now he set up a payment plan with the bank and he is giving me the runaround saying that the state has stepped in and stopped the foreclosure and other useless excuses. Now checked my credit and it is telling me that it is 90 days behind(the house has not gone into foreclosuer yet). I asked him what was going on and again he gave me the run around. My concern is that I signed a quit deed with him, to get me off with the deed. However, I am still responsible for the loan. He will not return my phone calls nor will he answer my questions, I have been trying to get him to sell the house for months, but he throws in another excuse about ghost income. I do not want to be part of the loan. However, he will not give me any information on the house. I called the bank and they will not release any information about the house. My credit is destroyed by the mortgage and I am barely making it through. I want to file bankruptcy but it will not remove the home loan since I am the co-signer. Can I hold my friend responsible for damages? If the house goes into foreclose can the IRS hold me accountable since I am the co-signer (knowing I cannot pay the IRS make change). I know I made a mistake in the past and I know it was a stupid move. Is there any light at the end of this tunnel or is there any way out?
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