Co-Sign Question

[meoops]

This is a question I have been wondering about....

Let's say you have co-signed for a home loan for a family member.
They have not been paying their mortgage and you have been paying for the past 6 months for them as the co-signer.

They decide to file chapter 13 and keep the house. They are not current on the payments...you are current as you are the one that has been paying.

What options would you have? Could you get you name removed from the loan by showing the Trustee you made the payments? Would you even be allowed to go to the 341 meeting?

Could you get your money back from them thru their payment plan?

[AngelinaCatHub]

Wow. You are stuck. You cosigned and you own that mortgage. However, you might be able to come in as a creditor. In any case, if they pay in their 13, then default, you are NOT off the hook.

I made this fatal mistake. NEVER cosign even for your own child. When you loan a friend money, you lost a friend. Remember that. 'Hub

[justbroke]

What 'Hub said. It's not a good place and is why I never cosign, even for a relative.

They can't keep the house and not pay. They would have to, in their Chapter 13 petition, treat your payments as income. It's a tricky place. I would watch their filing and I would attend the 341 Meeting to ask them their intentions in front of the U.S. Trustee.

[meoops]

I did not co-sign...it was just a question.....

I have enough problems without being a co-signer. I was just asking a question as my brain always does the "what if's".....lol.

I am sorry if I did not make that clear enough in the post.

IT WAS JUST A QUESTION OUT OF COURIOUSITY.

[justbroke]

Understood... well use the information provided or not. Sometimes it's hard to say no to family and friends, but this is one area where I had always been firm (when had my excellent credit, of course).