(Closed) Legal-home loan cosigner question

posted 8 years ago in Legal
Post # 3
Member
2208 posts
Buzzing bee
  • Wedding: July 2010

I’m no expert on finance, but two things. 1) I don’t think that her cousin’s bankruptcy will impact her. 2) Your mom will be on the hook for the house.

The cousin’s bankruptcy will not discharge the loan. Does she have other creditors coming after her? If not, she should probably try to work it out with your mom. Can the cousin pay part of the loan and your mom the other part? That might best protect their interests. It stinks, but if your mom keeps the mortgage paid, it will really help her situation.

Post # 4
Member
2475 posts
Buzzing bee
  • Wedding: June 2010

Some of what I do as an attorney is collection work.  I don’t know the specifics of how much this will affect your mom’s credit rating, but it definitely will.  I can say that she will not be as negatively affected as her cousin will, because your mom is not the one filing for bankruptcy.  However, since your mom is a co-signer, she is liable for the default on the loan and they could go after her for the amount due.

The topic ‘Legal-home loan cosigner question’ is closed to new replies.

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