Father cosigned for daughter now in default

[eajonesyk2]

What is the name of your state? Oregon

My Father who resides in Washington State cosigned on a mortgage for my sister and her husband. The home they purchased is in Ohio. They have not made there last four payments and my Father is worried that the lender may foreclose on the property and come after him for any amount not recovered. He has not been contacted by the lender yet. Is it likely they will try to contact him before starting the foreclosing process? Can my Father "take over" the property in order to sell it? If so, what steps would need to be taken to do this?

Thanks for any help.
Eric

Originally Posted by eajonesyk2

What is the name of your state? Oregon

My Father who resides in Washington State cosigned on a mortgage for my sister and her husband. The home they purchased is in Ohio. They have not made there last four payments and my Father is worried that the lender may foreclose on the property and come after him for any amount not recovered. He has not been contacted by the lender yet. Is it likely they will try to contact him before starting the foreclosing process? Can my Father "take over" the property in order to sell it? If so, what steps would need to be taken to do this?

Thanks for any help.
Eric

If pa wants the land, he needs to have sis and hubby deed it to him (with the permission of the lender) OR he could just wait and buy it at the auction on the courthouse steps.

Q: Is it likely they will try to contact him before starting the foreclosing process?

A: GENERALLY the rule is that the mortgagors must be notified at the address on the deed of trust or mortgage.


Q: Can my Father "take over" the property in order to sell it?

A: Yes, see answer above.


Q: If so, what steps would need to be taken to do this?

A: See answer above.

[eajonesyk2]

I not sure I got this one:

"GENERALLY the rule is that the mortgagors must be notified at the address on the deed of trust or mortgage."

So you believe that my "pa" should be notified before they start the foreclosure process.

If my sis and/or hubby refuse or ignore the request to transfer the deed, is pa out of luck? My pa would not be interested in owning the property other then to sell it and recover as much as possible to go towards the remaining loan balance.

If the lender ends up foreclosing on the property can they garnish pension payments to collect?

Originally Posted by eajonesyk2

I not sure I got this one:

"GENERALLY the rule is that the mortgagors must be notified at the address on the deed of trust or mortgage."

So you believe that my "pa" should be notified before they start the foreclosure process.

If my sis and/or hubby refuse or ignore the request to transfer the deed, is pa out of luck? My pa would not be interested in owning the property other then to sell it and recover as much as possible to go towards the remaining loan balance.

If the lender ends up foreclosing on the property can they garnish pension payments to collect?

So you believe that my "pa" should be notified before they start the foreclosure process.

No. I believe GENERALLY the rule is that the mortgagors (pa and whoever else signed it) must be notified at the address on the deed of trust or mortgage.


If my sis and/or hubby refuse or ignore the request to transfer the deed, is pa out of luck? My pa would not be interested in owning the property other then to sell it and recover as much as possible to go towards the remaining loan balance.

Then he better be the high bidder at the courthouse steps. There are "requests for notice" that can be recorded in some states. If he does that, he should get notice (if such things exist in the state where the real estate is). Otherwise, he'd better be finding out from the mortgage company when this sale will happen and be there with a pocketful of cash.

[eajonesyk2]

"No. I believe GENERALLY the rule is that the mortgagors (pa and whoever else signed it) must be notified at the address on the deed of trust or mortgage."

I think I got it now, unless sis or hubby volunteers that they have received a notice of foreclosure, pa is in the dark.

I doubt pa is going to be able to make it to the courthouse steps with a "pocketful of cash". It sounds like I better make my way over to the bankruptcy forum.

Is there another forum here that could help with the pension question:

If the lender ends up foreclosing on the property can they garnish pension payments to collect?

Thanks for your help.

[vahomebuyer]

your father can try to sue for title, catch up the payments and get your sister out of the house if she is not paying. Has he tried speaking with her in ref to them selling the house so that it gets paid off and he doesnt have it on his credit anymore? terrible thing to see problems w/ family member but your father has to take drasti measures if he does not want the property to be put up for sale. OH allows deficiency judgements in which if the house is auctioned for less than is owed on it the previous holders of the note (ie sis and pa) can have a deficiency judgment issued against them. Still consulting a lawyer before it gets much further would be a good idea. God speed and good luck.

V