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Question By
giggles9

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I've co-signed for a mortgage, They defaulted. What can I do
does a co signer have any rights???

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Top Contributor
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Never cosign!!!

A co-signer is needed because a person with lousy credit wants something and they can't get the credit without someone to guarantee the loan.  So they get someone to do that (a cosigner) who volunteers to take the full responsibility for that loan if the original borrower defaults.  That is exactly what you did and they did, so I never recommend being a cosigner. 

Now, you may have to involve an attorney to help you get the house so you can sell it and try to get out of this debt.   Otherwise, you may just be stuck with this house mortgage.

In  the future, remember this:  if someone can't qualify for a loan on their own, never cosign unless you can afford to lose the money, because it's almost guaranteed that is exactly what will happen.

Top Contributor
1884 Contributions
3672 People Helped

That fatal mistake...

It seems to strike all to often.

Now that they have defaulted, Contact the lender. Explain that you would like time to get this corrected and ask if they can work with you to get the property in your possesion and get it listed for sale. If you don't get an agreement, Call back again and see if the next Cust service rep will work with you.  Keep trying, and eventually you will find someone that will have some sympathy.. Most lenders are very leary of letting properties go into complete default now, So you probably have a good chance of getting them to work with you.

You will probably have to bring the account current and make the payments every month untill its liquidated. You will have to get the person you co-signed for out of the property, and make them understand that when you co-signed that they agreed that if they could not make the payments that you would take the property because you are financially responsible.  That is usualloy the hardest part.   

If you in a position to refi the loan in your name that could be an option, who knows, you could end up with some nice rental income.

Good luck

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