Consumption and Real Estate
what are we going to do if the borrower of the house mortgage will default?
Question : what are we going to do if the borrower of the house mortgage will default?
my husband is a co-signer of his family’s house mortgage, his father is the co-borrower and his mom is the borrower.now his mom and dad are planning to separate and his mom decides to leave the house.what options do we have? i wanted to find another house, but my husband wanted to assume the house…please give me the best option…
house mortgage
Best answer:
Answer by Joe L
It’s time to hire an attorney!
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#2 written by divadev 1 year ago
The best option is the one that you can afford. If the mother leaves without paying the mortgage, your husband and his father may be able to sue her, but is that likely to happen? If you don’t feel as though you can afford the extra expense, the best option is to sell the house, or at least rent it out (if you can). But family is involved here so it’s not so easy. Good luck.
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#3 written by Jay P 1 year ago
Yes I would find a lawyer and fast. This is exactly why cosigning a loan is a bad idea. You get all of the bad parts of borrowing money without actually owning anything. All you own is the right to be responsible if the loan goes into default.
During the divorce process, your husband needs to be sure that the house gets refinanced or sold at a high enough price to pay off the mortgage. Otherwise, you two need to step up and make sure that the loan does not go into default. However, just don’t assume the payments. Make sure you actually buy the house. Otherwise the mother and father will still be the legal owners.
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#4 written by Reena 1 year ago
The best option you have is to consult with a real estate lawyer and let him go over the mortgage contract and titles deeds, etc. and go from there.
This is complicated and there are so many unknown factors in this that you should not consult with total strangers that have no idea of the exact details of this deal.
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It really depends on how the deed to the house was written, and whether or not any one of you can afford to live there. Most likely, the deed is in both parents names, so when mom and dad divorce, the house will be sold (or one person will buy the other one out) and any excess money is split between the two. If neither can buy the other out, it is sold and any excess money is split between the two.
If you think you and your husband can afford the house on your own, and would want to live there, the best thing to do is to buy it from your parents, get a mortgage in just your names, and at least you won’t lose lots of money to lawyers and realtors.
If you don’t want the house, or can’t afford it, or if there is lots of fighting going on between mom and dad and you can’t reach an agreement, then time to call in the lawyers.