QUESTION
What can I do if a home I co-signed for is going into foreclosure?
Asked on Jun 20th, 2011 on Bankruptcy - Georgia
More details to this question:
I co-signed for my parents house when I was 21 or 22. They are now divorced and the house is going into foreclosure.. Can I do anything legally about this to stop it from ruining my credit, or am I just doomed?
9 ANSWERS
Spencer Hale
If all you care about is your credit then you can pay the bill. The bad news is your credit is probably already shot because of all the delinquent payments.
Answered on Jun 24th, 2011 at 10:32 AM
Litigation Attorney serving Portland, OR
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Daniel G. Hoarfrost
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Legally, you have a right of redemption, which means you have the right to pay off the mortgage.Financially, that's probably not very workable. As to the effects on your credit, you always have the right to enter an explanation in the credit file that it wasn't your primary debt, that your liability was created through a co-sign/ guaranty situation.
Answered on Jun 23rd, 2011 at 11:18 AM
You can pay the loan as you agreed to do. If you do not, then your credit will reflect that you failed to do so. You are not doomed, but you will have to wait a few years before this event becomes meaningless to potential creditors.
Answered on Jun 23rd, 2011 at 11:14 AM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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The creditor will now look to you for payment, unfortunately, or may just place it on your credit report. You could put a note there saying you're a co-signer and the primary holder is in bankruptcy. You could also file bankruptcy, if there are other matters making it worth your while. (Though this will leave a significant debt in itself.)
Answered on Jun 23rd, 2011 at 9:43 AM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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You could file bankruptcy to stop the foreclosure and discharge any unsecured deficiency after the foreclosure. Please call to discuss.
Answered on Jun 23rd, 2011 at 9:04 AM
Not much you can do unless you can take over the mortgage yourself and see it through to the end.
Answered on Jun 22nd, 2011 at 3:07 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Being a co-signer creates a legal obligation to pay the debt when the primary signer does not. If it is not paid you may be subject to a lawsuit as well as negative creditor reporting.
Answered on Jun 22nd, 2011 at 12:01 PM
3 Awards
You could discharge the debt in CH 7.
Answered on Jun 22nd, 2011 at 11:41 AM
Glen Edward Ashman
It will appear on your credit. A bigger worry will be are they going to sue you for a deficiency. I would suggest you sit down with a lawyer.
Answered on Jun 22nd, 2011 at 10:57 AM