cosigner in affirmation?

[mcclurs2]

I refinanced my house thru someone I thought I trusted and because my daughter was on my bank account, the lender required me to put her on my loan. She was in school at the time an not even working. I put her on my bank account so I would not have to babysit every time she needed something. She lives on her own now and even bought her own house and has never paid a dime to the house and never will no matter what. I am filing bankruptcy now but want to keep the house. Do you know if it is possible that I could negotiate with the lender that I will reaffirm if they take my daughter off the loan? Can she be taken off the loan in a reaffirmation agreement? I am not behind on payments and do not plan to be. My daughter should have never been on that loan. Your help is really appreciated. Thank you.
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[justbroke]

How in the world is your daughter on a mortgage? There is no way -- that I can see -- that a Bank required her to sign the mortgage and security agreement, just because you shared a bank account (demand deposit or timed deposit account). So the question really is this; she's really on the mortgage? It appears that the broker (you're friend) used your daughters credit to get the refinance loan. However, your daughter, if she actually signed the paperwork, is liable for the debt.

If you reaffirm, the likely that the lender would let you remove your daughter is almost nothing. They have a person on the hook who apparently has good credit and their own assets (home). That person is your daughter. I see this as a non-starter.

If you have been paying on time (on the first, not limits of the grace period), and are current, then why even reaffirm. Sure, they'll seek payment from your daughter, but she is liable for the loan regardless of what you do! The only way for her to shed the responsibility of paying it, would be for her to file for bankruptcy or actually pay the loan off. The other way may be if you were to refinance it and remove her name during the refinance. The chances that you'll be able to refinance are very slim.

I just can't see your strategy working... but that doesn't mean it won't work or that it's not worth a try. If I were the lender, I would never let your daughter off the hook since it appears that it was her credit that allowed the refinance loan to be approved anyhow.

A co-signer (co-obligor) cannot sign a reaffirmation since they are already bound by the terms of the Mortgage and Promissory Note.

[mcclurs2]

It was Lime Financial that required my daughter to be on the loan. She did not have any credit! She was not even out of school! I have seen attorneys on line that say they have used this strategy and it looks to be pretty common so I have to at least give it a try. Do you know if they can take the house if I am current on my payments (which I am) if I do not affirm? Thanks for your help.

[justbroke]

I have seen attorneys on line that say they have used this strategy and it looks to be pretty common so I have to at least give it a try.

Give what a try? What strategy are you speaking of?

Do you know if they can take the house if I am current on my payments (which I am) if I do not affirm? Thanks for your help.

Generally speaking, most Districts allow a "ride through" on a mortgage. You just need to stay current at all times. By current, that means adequate hazard insurance is kept and is paid on time, property taxes are up to date (and paid on time), and the mortgage is paid on time.

[mcclurs2]

Yes I do that anyway. The stratagy is take cosigner off and I will reaffirm. I know that it is a long shot but I have to at least try. I do not see us ever being able to refinance and we are old so who know how long we will be around or be able to sell. Right now as everyone else we would have to sell on a short sale if they would even accept. We have Litton Loan and they are terrible!! It took them a year for a loan modification and we even had a attorney.

[justbroke]

I never even broached the subject of... is the home even worth keeping? How much are you underwater by?