Cosigning obligations for spouse

[aminalme1]

What is the name of your state? Michigan

I'm not sure if anyone can help me but I sure hope you can point me in the right direction. I married my husband 5 years ago. We co-own a home together and it is within 4 years of being paid for. All was well until about 1-1/2 years ago. My husband decided to co-sign a mortgage with his son to help him buy a home. Since he moved in, his son has managed to make the payments on time (with much prodding and reminding from us) but we have had to come up with some of the money from time to time to cover the full payments. It has been obvious from the beginning that he cannot afford to keep the house. He doesn't make enough money to cover the monthly expenses, winter is coming and he needs to come up with quite a bit of money to buy fuel for the furnace. The only obvious answer is to sell the house. The son refuses to move. There is an addendum to the mortgage that is supposed to legally allow my husband to force his son to sell but that is not going to happen. My question is, is there anything I can do to protect myself and my assets when the payments are no longer made on time or not made for the full amount? My husband and I have excellent credit but I fear that isn't going to last much longer. Someone suggested my husband sign a quit claim deed giving the house to me. I don't quite see how that will change things. Does that mean we should file for a divorce? I've rambled on quite a bit and there's lots more to tell but this is the nitty gritty and I'm just trying to figure out where I stand. I know I should have thought about this sooner but I really was hoping it would work. I don't want to come across as the "evil" stepmother but that's how I've been made to feel for wanting to protect what my husband and I have, both together and seperately. Thanks for any ideas!

[FlyingRon]

Nothing on the mortgage has anything to do with forcing a sale (other than the lender forcing one if it forecloses). If your husband is a partial owner of the property (on the deed) then he can bring a partition lawsuit to force the sale of the property. It's not the most trivial thing, but it may be your best answer in the long run.

Your analysis is correct, a quit claim won't do squat here.

As for getting your husband to stand up to his son, that's something you are going to have to work out. A divorce may not be the best answer, but it is an option.

[aminalme1]

Thanks for your prompt response. No, there is nothing in the actual mortgage but the bank did suggest we get a separate document drawn up by a lawyer that gave my husband legal footing in case it was needed. And we made sure we did. But my husband's kids are prone to melodramatics so it is very difficult for him to stand up to them. I have asked him several times what he plans to do and he just keeps telling me he doesn't know. So I'm pretty sure he isn't going to force the kid to sell. I will still work on it, though.

I was pretty certain a quit claim deed would be worthless. My only reason for suggesting a divorce was getting my name off anything we held jointly so at least one of us would still have some sort of credit rating when this was finally (if ever) sorted out.

[HomeGuru]

Originally Posted by aminalme1

Thanks for your prompt response. No, there is nothing in the actual mortgage but the bank did suggest we get a separate document drawn up by a lawyer that gave my husband legal footing in case it was needed. And we made sure we did. But my husband's kids are prone to melodramatics so it is very difficult for him to stand up to them. I have asked him several times what he plans to do and he just keeps telling me he doesn't know. So I'm pretty sure he isn't going to force the kid to sell. I will still work on it, though.

I was pretty certain a quit claim deed would be worthless. My only reason for suggesting a divorce was getting my name off anything we held jointly so at least one of us would still have some sort of credit rating when this was finally (if ever) sorted out.

**A: is your husband on title to your stepson's home?

[aminalme1]

Yes, he is.