Co-Borrower 2nd mortgage

[mbautista]

What is the name of your state? California

My mother purchased a Condo back in 2005. First and second mortgage is in her name and I was recently added as a co-borrower 1 year ago when she refinance to have the second mortgage as a fixed rate for 5 years. Assuming the market will pick and transfer the property to my name. But as we all know it plunged. So my question is since she is the primary borrower on both. If she decides to let the house go/foreclosure would I be hit hard on my credit report? The difference owe on the total mortgage is $40k. We were thinking of short sale but will owe $40k. How will this work for both of us? Her concern is my credit in the near future to purchase a home or anything related to credit. If we do the short sale. We have to make arrangements with the lender to make monthly payments to pay it off? Or do we need the money upfront when the house sells? We are going back to look at the mortgage note to identify if I'm a co-signer on note or co-owner. I heard this makes a difference. But the bottom line is. Is their other ways we can go about this? I have no interest in the property at all. I just want to get out. We are all current in both mortgages. Another thought was to rent it and wait till the market picks up a little bit to break even. 3 years that I'm thinking of when this happens if so. Another dilemma that we are having is this coming March when our first mortgage is going to be variable no longer fix rate. We can no longer afford the property if it goes up 1 to 2 percent. $300-$600 added to existing payment. Any other ideas or inputs? Thanks!What is the name of your state?

[seniorjudge]

Q: If she decides to let the house go/foreclosure would I be hit hard on my credit report?

A: Yes.


Q: We are going back to look at the mortgage note to identify if I'm a co-signer on note or co-owner. I heard this makes a difference.

A: You heard wrong.




Now is an excellent time to refinance. (Sorry...I don't loan money.)